Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - REINSURANCE GROUP OF AMERICA INC | pressrelease4q16.htm |
| 8-K - 8-K - REINSURANCE GROUP OF AMERICA INC | prqfs4q16.htm |
Exhibit 99.2
Financial Supplement
Fourth Quarter 2016
(Unaudited)
World Headquarters | Internet Address | Contacts | ||
16600 Swingley Ridge Road | www.rgare.com | Todd C. Larson | ||
Chesterfield, Missouri 63017 U.S.A. | Senior Executive Vice President | |||
and Chief Financial Officer | ||||
Phone: (636) 736-7000 | ||||
e-mail: tlarson@rgare.com | ||||
Jeff Hopson | ||||
Sr. Vice President, Investor Relations | ||||
Phone: (636) 736-2068 | ||||
e-mail: jhopson@rgare.com | ||||
Current Ratings | ||||||
Standard & Poor’s | A.M. Best | Moody’s | ||||
Financial Strength Ratings | ||||||
RGA Reinsurance Company | AA- | A+ | A1 | |||
RGA Life Reinsurance Company of Canada | AA- | A+ | NR | |||
RGA International Reinsurance Company dac | AA- | NR | NR | |||
RGA Global Reinsurance Company, Limited | AA- | NR | NR | |||
RGA Reinsurance Company of Australia Limited | AA- | NR | NR | |||
RGA Americas Reinsurance Company, Ltd. | AA- | A+ | NR | |||
RGA Atlantic Reinsurance Company Ltd. | NR | A+ | NR | |||
Senior Debt Ratings | ||||||
Reinsurance Group of America, Incorporated | A- | a- | Baa1 | |||
Our common stock is traded on the New York Stock Exchange under the symbol “RGA”.
Reinsurance Group of America, Incorporated
Financial Supplement
4th Quarter 2016
Table of Contents
Page | |
Consolidated | |
Segment Summaries of GAAP Income Statements and Operating Income Statements | |
Investments | |
Appendix | |
Reinsurance Group of America, Incorporated
Quarterly Financial Supplement
Non-GAAP Disclosures
This Financial Supplement is for information purposes only and includes unaudited figures. This report should be read in conjunction with documents filed by Reinsurance Group of America, Incorporated ("RGA") with the SEC.
Non-GAAP Disclosures
RGA uses a non-GAAP financial measure called operating income as a basis for analyzing financial results. This measure also serves as a basis for establishing target levels and awards under RGA’s management incentive programs. Management believes that operating income, on a pre-tax and after-tax basis, better measures the ongoing profitability and underlying trends of the Company’s continuing operations, primarily because that measure excludes substantially all of the effect of net investment related gains and losses, as well as changes in the fair value of certain embedded derivatives and related deferred acquisition costs. These items can be volatile, primarily due to the credit market and interest rate environment and are not necessarily indicative of the performance of the Company’s underlying businesses. Additionally, operating income excludes any net gain or loss from discontinued operations, the cumulative effect of any accounting changes, and other items that management believes are not indicative of the Company’s ongoing operations. The definition of operating income can vary by company and is not considered a substitute for GAAP net income. A reconciliation of income before income taxes of the operating segments to operating income before income tax is presented in the appendix.
RGA evaluates its stockholders' equity position excluding the impact of accumulated other comprehensive income (“AOCI”) since the net unrealized gains or losses included in AOCI primarily relate to changes in interest rates, credit spreads on its investment securities and foreign currency fluctuations that are not permanent and can fluctuate significantly from period to period.
RGA uses a non-GAAP financial measure called operating return on equity, which is calculated as operating income divided by average shareholders’ equity excluding AOCI.
Additionally, RGA uses a non-GAAP financial measure called book value per share excluding the impact of AOCI that management believes is important in evaluating the balance sheet in order to ignore the effects of unrealized amounts primarily associated with mark-to-market adjustments on investments and foreign currency translation.
| Page 1 | |
Reinsurance Group of America, Incorporated
Financial Supplement
2016 Notes
Segment Name Change
In the fourth quarter of 2016, RGA changed the name of its Non-Traditional segments to Financial Solutions. The name change better aligns our external reports to internally used
terminology. This name change does not affect any previously or future reported results for the Financial Solutions segments.
| Page 2 | |
Reinsurance Group of America, Incorporated
Financial Supplement
2017 Guidance
On an annual basis, the Company provides financial guidance based upon the intermediate term rather than giving a range of annual earnings per share for an upcoming year. This better reflects the long-term nature of the business and the difficulty in predicting the timing of shorter-term or periodic events such as block transactions. The Company accepts risks over very long periods of time, up to 30 years or longer in some cases. While more predictable over longer-term horizons, RGA’s business is subject to inherent short-term volatility, primarily due to mortality and morbidity experience.
Over the intermediate term, the Company continues to target growth in operating income per share in the 5 to 8 percent range, and operating return on equity of 10 to 12 percent. It is presumed that there are no significant changes in the investment environment from current levels, and the company will deploy $300 million to $400 million of excess capital, on average, annually. These guidance ranges are based upon “normalized” results. Both the operating EPS target range and the ROE ranges are unchanged from a year ago.
| Page 3 | |
Reinsurance Group of America, Incorporated Financial Highlights | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr vs. PY Quarter | Year-to Date | ||||||||||||||||||||||||||||||||||||
(USD thousands, except in force & per share data) | Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | 2016 | 2015 | Change | |||||||||||||||||||||||||||||||
Net premiums | $ | 2,493,163 | $ | 2,251,758 | $ | 2,346,945 | $ | 2,157,005 | $ | 2,328,501 | $ | 164,662 | $ | 9,248,871 | $ | 8,570,741 | $ | 678,130 | ||||||||||||||||||||
Net income | 190,149 | 198,719 | 236,103 | 76,472 | 163,127 | 27,022 | 701,443 | 502,166 | 199,277 | |||||||||||||||||||||||||||||
Operating income | 171,259 | 159,361 | 181,228 | 120,750 | 187,950 | (16,691 | ) | 632,598 | 567,084 | 65,514 | ||||||||||||||||||||||||||||
Return on equity - annualized | 10.1 | % | 10.2 | % | 13.2 | % | 4.8 | % | 10.5 | % | (0.4 | )% | ||||||||||||||||||||||||||
Return on equity - trailing 12 months | 9.9 | % | 9.7 | % | 8.4 | % | 6.9 | % | 7.6 | % | 2.3 | % | ||||||||||||||||||||||||||
Operating return on equity (ex AOCI): | ||||||||||||||||||||||||||||||||||||||
Annualized | 11.7 | % | 11.2 | % | 13.2 | % | 8.9 | % | 14.0 | % | (2.3 | )% | ||||||||||||||||||||||||||
Trailing 12 months | 11.2 | % | 11.8 | % | 11.4 | % | 10.6 | % | 10.6 | % | 0.6 | % | ||||||||||||||||||||||||||
Total assets | $ | 53,097,879 | $ | 54,832,498 | $ | 53,876,703 | $ | 52,186,624 | $ | 50,383,152 | $ | 2,714,727 | ||||||||||||||||||||||||||
Assumed Life Reinsurance In Force (in billions) | ||||||||||||||||||||||||||||||||||||||
U.S. and Latin America Traditional | $ | 1,609.3 | $ | 1,603.8 | $ | 1,612.9 | $ | 1,609.3 | $ | 1,594.3 | $ | 15.0 | ||||||||||||||||||||||||||
U.S. and Latin America Financial Solutions | 2.1 | 2.1 | 2.1 | 2.1 | 2.1 | — | ||||||||||||||||||||||||||||||||
Canada Traditional | 355.7 | 358.7 | 361.8 | 349.0 | 333.0 | 22.7 | ||||||||||||||||||||||||||||||||
Europe, Middle East and Africa Traditional | 603.0 | 612.8 | 608.3 | 624.2 | 602.7 | 0.3 | ||||||||||||||||||||||||||||||||
Asia Pacific Traditional | 492.2 | 505.1 | 504.8 | 483.5 | 462.7 | 29.5 | ||||||||||||||||||||||||||||||||
Asia Pacific Financial Solutions | 0.2 | 0.3 | 0.4 | 0.3 | 0.3 | (0.1 | ) | |||||||||||||||||||||||||||||||
Total Assumed Life Reinsurance In Force | $ | 3,062.5 | $ | 3,082.8 | $ | 3,090.3 | $ | 3,068.4 | $ | 2,995.1 | $ | 67.4 | ||||||||||||||||||||||||||
Assumed New Business Production (in billions) | ||||||||||||||||||||||||||||||||||||||
U.S. and Latin America Traditional | $ | 33.4 | $ | 19.7 | $ | 32.0 | $ | 41.3 | $ | 142.1 | (1) | $ | (108.7 | ) | $ | 126.4 | $ | 203.9 | $ | (77.5 | ) | |||||||||||||||||
Canada Traditional | 9.1 | 9.4 | 8.2 | 8.2 | 8.7 | 0.4 | 34.9 | 38.6 | (3.7 | ) | ||||||||||||||||||||||||||||
Europe, Middle East and Africa Traditional | 44.3 | 31.7 | 49.1 | 44.7 | 66.0 | (1) | (21.7 | ) | 169.8 | 171.6 | (1.8 | ) | ||||||||||||||||||||||||||
Asia Pacific Traditional | 21.6 | 20.5 | 18.0 | 13.6 | 12.1 | 9.5 | 73.7 | 76.9 | (3.2 | ) | ||||||||||||||||||||||||||||
Total Assumed New Business Production | $ | 108.4 | $ | 81.3 | $ | 107.3 | $ | 107.8 | $ | 228.9 | $ | (120.5 | ) | $ | 404.8 | $ | 491.0 | $ | (86.2 | ) | ||||||||||||||||||
Per Share and Shares Data | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||||||||||||||||
Net income | $ | 2.96 | $ | 3.10 | $ | 3.68 | $ | 1.18 | $ | 2.49 | $ | 0.47 | $ | 10.91 | $ | 7.55 | $ | 3.36 | ||||||||||||||||||||
Operating income | $ | 2.67 | $ | 2.48 | $ | 2.83 | $ | 1.87 | $ | 2.87 | $ | (0.20 | ) | $ | 9.84 | $ | 8.52 | $ | 1.32 | |||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||||||||||||
Net income | $ | 2.92 | $ | 3.07 | $ | 3.64 | $ | 1.17 | $ | 2.46 | $ | 0.46 | $ | 10.79 | $ | 7.46 | $ | 3.33 | ||||||||||||||||||||
Operating income | $ | 2.63 | $ | 2.46 | $ | 2.80 | $ | 1.85 | $ | 2.84 | $ | (0.21 | ) | $ | 9.73 | $ | 8.43 | $ | 1.30 | |||||||||||||||||||
Wgt. average common shares outstanding | ||||||||||||||||||||||||||||||||||||||
Basic | 64,251 | 64,146 | 64,126 | 64,568 | 65,535 | (1,284 | ) | 64,274 | 66,553 | (2,279 | ) | |||||||||||||||||||||||||||
Diluted | 65,124 | 64,815 | 64,796 | 65,217 | 66,247 | (1,123 | ) | 64,989 | 67,292 | (2,303 | ) | |||||||||||||||||||||||||||
Common shares issued | 79,138 | 79,138 | 79,138 | 79,138 | 79,138 | — | 79,138 | 79,138 | — | |||||||||||||||||||||||||||||
Treasury shares | 14,835 | 14,932 | 15,068 | 15,073 | 13,933 | 902 | 14,835 | 13,933 | 902 | |||||||||||||||||||||||||||||
Common shares outstanding | 64,303 | 64,206 | 64,070 | 64,065 | 65,205 | (902 | ) | 64,303 | 65,205 | (902 | ) | |||||||||||||||||||||||||||
Book value per share | $ | 110.31 | $ | 124.50 | $ | 118.32 | $ | 104.88 | $ | 94.09 | ||||||||||||||||||||||||||||
Per share effect of AOCI | $ | 17.72 | $ | 34.46 | $ | 30.99 | $ | 20.77 | $ | 10.86 | ||||||||||||||||||||||||||||
Book value per share, excluding AOCI | $ | 92.59 | $ | 90.04 | $ | 87.33 | $ | 84.11 | $ | 83.23 | ||||||||||||||||||||||||||||
Shareholder dividends paid | $ | 26,337.3 | $ | 26,288.3 | $ | 23,727.2 | $ | 24,018.6 | $ | 24,269.1 | $ | 2,068.2 | $ | 100,371.4 | $ | 93,380.5 | $ | 6,990.9 | ||||||||||||||||||||
(1) Includes the effect of significant in force transactions. | ||||||||||||||||||||||||||||||||||||||
| Page 4 | |
Reinsurance Group of America, Incorporated Consolidated GAAP Income Statements (including Operating Income Reconciliations) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr | Year-to Date | ||||||||||||||||||||||||||||||||||||
(USD thousands) | Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | vs. PY | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||||||
Revenues: | 2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | |||||||||||||||||||||||||||||
Net premiums | $ | 2,493,163 | $ | 2,251,758 | $ | 2,346,945 | $ | 2,157,005 | $ | 2,328,501 | $ | 164,662 | $ | 9,248,871 | $ | 8,570,741 | $ | 678,130 | ||||||||||||||||||||
Investment income, net of related expenses | 497,227 | 489,727 | 507,666 | 417,266 | 467,468 | 29,759 | 1,911,886 | 1,734,495 | 177,391 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | ||||||||||||||||||||||||||||||||||||||
OTTI on fixed maturity securities | (4,142 | ) | — | (846 | ) | (33,817 | ) | (27,605 | ) | 23,463 | (38,805 | ) | (57,380 | ) | 18,575 | |||||||||||||||||||||||
OTTI on fixed maturity securities transferred to AOCI | 74 | — | — | — | — | 74 | 74 | — | 74 | |||||||||||||||||||||||||||||
Other investment related gains (losses), net | 14,261 | 86,624 | 119,110 | (87,069 | ) | (17,204 | ) | 31,465 | 132,926 | (107,370 | ) | 240,296 | ||||||||||||||||||||||||||
Total investment related gains (losses), net | 10,193 | 86,624 | 118,264 | (120,886 | ) | (44,809 | ) | 55,002 | 94,195 | (164,750 | ) | 258,945 | ||||||||||||||||||||||||||
Other revenue | 68,715 | 72,468 | 66,193 | 59,183 | 77,431 | (8,716 | ) | 266,559 | 277,692 | (11,133 | ) | |||||||||||||||||||||||||||
Total revenues | 3,069,298 | 2,900,577 | 3,039,068 | 2,512,568 | 2,828,591 | 240,707 | 11,521,511 | 10,418,178 | 1,103,333 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 2,116,045 | 1,993,064 | 1,997,502 | 1,886,764 | 2,015,929 | 100,116 | 7,993,375 | 7,489,382 | 503,993 | |||||||||||||||||||||||||||||
Interest credited | 64,089 | 116,848 | 95,849 | 87,905 | 105,032 | (40,943 | ) | 364,691 | 336,964 | 27,727 | ||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 370,134 | 300,962 | 405,681 | 233,763 | 300,329 | 69,805 | 1,310,540 | 1,127,486 | 183,054 | |||||||||||||||||||||||||||||
Other operating expenses | 175,634 | 152,556 | 159,895 | 157,424 | 158,556 | 17,078 | 645,509 | 554,044 | 91,465 | |||||||||||||||||||||||||||||
Interest expense | 41,422 | 43,063 | 20,331 | 32,807 | 35,820 | 5,602 | 137,623 | 142,863 | (5,240 | ) | ||||||||||||||||||||||||||||
Collateral finance and securitization expense | 6,431 | 6,484 | 6,587 | 6,325 | 6,182 | 249 | 25,827 | 22,644 | 3,183 | |||||||||||||||||||||||||||||
Total benefits and expenses | 2,773,755 | 2,612,977 | 2,685,845 | 2,404,988 | 2,621,848 | 151,907 | 10,477,565 | 9,673,383 | 804,182 | |||||||||||||||||||||||||||||
Income before income taxes | 295,543 | 287,600 | 353,223 | 107,580 | 206,743 | 88,800 | 1,043,946 | 744,795 | 299,151 | |||||||||||||||||||||||||||||
Income tax expense | 105,394 | 88,881 | 117,120 | 31,108 | 43,616 | 61,778 | 342,503 | 242,629 | 99,874 | |||||||||||||||||||||||||||||
Net income | $ | 190,149 | $ | 198,719 | $ | 236,103 | $ | 76,472 | $ | 163,127 | $ | 27,022 | $ | 701,443 | $ | 502,166 | $ | 199,277 | ||||||||||||||||||||
Pre-tax Operating Income Reconciliation: | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 295,543 | $ | 287,600 | $ | 353,223 | $ | 107,580 | $ | 206,743 | $ | 88,800 | $ | 1,043,946 | $ | 744,795 | $ | 299,151 | ||||||||||||||||||||
Investment and derivative losses (gains)— | ||||||||||||||||||||||||||||||||||||||
non-operating (1) | 103,944 | (26,958 | ) | (67,100 | ) | (31,968 | ) | 64,034 | 39,910 | (22,082 | ) | 49,586 | (71,668 | ) | ||||||||||||||||||||||||
Change in value of modified coinsurance and | ||||||||||||||||||||||||||||||||||||||
funds withheld embedded derivatives (1) | (20,374 | ) | (49,078 | ) | (76,966 | ) | 92,249 | 27,201 | (47,575 | ) | (54,169 | ) | 98,793 | (152,962 | ) | |||||||||||||||||||||||
GMXB embedded derivatives (1) | (90,923 | ) | (7,988 | ) | 28,137 | 62,940 | (36,437 | ) | (54,486 | ) | (7,834 | ) | 33,191 | (41,025 | ) | |||||||||||||||||||||||
Funds withheld losses (gains)—investment income | (8,238 | ) | (3,322 | ) | (11,657 | ) | (4,983 | ) | 246 | (8,484 | ) | (28,200 | ) | (16,370 | ) | (11,830 | ) | |||||||||||||||||||||
EIA embedded derivatives—interest credited | (39,964 | ) | 42 | (17,364 | ) | 29,149 | (1,412 | ) | (38,552 | ) | (28,137 | ) | (12,582 | ) | (15,555 | ) | ||||||||||||||||||||||
DAC offset, net | 27,625 | 31,876 | 64,841 | (76,978 | ) | (13,142 | ) | 40,767 | 47,364 | (49,225 | ) | 96,589 | ||||||||||||||||||||||||||
Investment income on unit-linked variable annuities | (4,217 | ) | (5,540 | ) | (2,966 | ) | (408 | ) | — | (4,217 | ) | (13,131 | ) | — | (13,131 | ) | ||||||||||||||||||||||
Interest credited on unit-linked variable annuities | 4,217 | 5,540 | 2,966 | 408 | — | 4,217 | 13,131 | — | 13,131 | |||||||||||||||||||||||||||||
Non-investment derivatives | 289 | (1,705 | ) | 110 | (831 | ) | (120 | ) | 409 | (2,137 | ) | (118 | ) | (2,019 | ) | |||||||||||||||||||||||
Operating Income Before Income Taxes | $ | 267,902 | $ | 230,467 | $ | 273,224 | $ | 177,158 | $ | 247,113 | $ | 20,789 | $ | 948,751 | $ | 848,070 | $ | 100,681 | ||||||||||||||||||||
After-tax Operating Income Reconciliation: | ||||||||||||||||||||||||||||||||||||||
Net Income | $ | 190,149 | $ | 198,719 | $ | 236,103 | $ | 76,472 | $ | 163,127 | $ | 27,022 | $ | 701,443 | $ | 502,166 | $ | 199,277 | ||||||||||||||||||||
Investment & derivative losses (gains)— | ||||||||||||||||||||||||||||||||||||||
non-operating (1) | 66,640 | (19,745 | ) | (46,490 | ) | (21,727 | ) | 40,203 | 26,437 | (21,322 | ) | 30,020 | (51,342 | ) | ||||||||||||||||||||||||
Change in value of modified coinsurance and | ||||||||||||||||||||||||||||||||||||||
funds withheld embedded derivatives (1) | (13,243 | ) | (31,901 | ) | (50,028 | ) | 59,962 | 17,680 | (30,923 | ) | (35,210 | ) | 64,215 | (99,425 | ) | |||||||||||||||||||||||
GMXB embedded derivatives (1) | (59,100 | ) | (5,192 | ) | 18,289 | 40,911 | (23,684 | ) | (35,416 | ) | (5,092 | ) | 21,574 | (26,666 | ) | |||||||||||||||||||||||
Funds withheld losses (gains)—investment income | (5,355 | ) | (2,159 | ) | (7,577 | ) | (3,239 | ) | 161 | (5,516 | ) | (18,330 | ) | (10,640 | ) | (7,690 | ) | |||||||||||||||||||||
EIA embedded derivatives—interest credited | (25,977 | ) | 28 | (11,287 | ) | 18,947 | (917 | ) | (25,060 | ) | (18,289 | ) | (8,178 | ) | (10,111 | ) | ||||||||||||||||||||||
DAC offset, net | 17,957 | 20,719 | 42,147 | (50,036 | ) | (8,542 | ) | 26,499 | 30,787 | (31,996 | ) | 62,783 | ||||||||||||||||||||||||||
Investment income on unit-linked variable annuities | (2,741 | ) | (3,601 | ) | (1,928 | ) | (265 | ) | — | (2,741 | ) | (8,535 | ) | — | (8,535 | ) | ||||||||||||||||||||||
Interest credited on unit-linked variable annuities | 2,741 | 3,601 | 1,928 | 265 | — | 2,741 | 8,535 | — | 8,535 | |||||||||||||||||||||||||||||
Non-investment derivatives | 188 | (1,108 | ) | 71 | (540 | ) | (78 | ) | 266 | (1,389 | ) | (77 | ) | (1,312 | ) | |||||||||||||||||||||||
Operating Income | $ | 171,259 | $ | 159,361 | $ | 181,228 | $ | 120,750 | $ | 187,950 | $ | (16,691 | ) | $ | 632,598 | $ | 567,084 | $ | 65,514 | |||||||||||||||||||
(1) Included in “Investment related gains (losses), net” on Consolidated GAAP Income Statement. | ||||||||||||||||||||||||||||||||||||||
| Page 5 | |
Reinsurance Group of America, Incorporated Consolidated Operating Income Statements (USD thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr vs. PY Quarter | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | 2016 | 2015 | Change | |||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 2,493,163 | $ | 2,251,758 | $ | 2,346,945 | $ | 2,157,005 | $ | 2,328,501 | $ | 164,662 | $ | 9,248,871 | $ | 8,570,741 | $ | 678,130 | ||||||||||||||||||||
Investment income, net of related expenses | 484,772 | 480,865 | 493,043 | 411,875 | 467,714 | 17,058 | 1,870,555 | 1,718,125 | 152,430 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 2,840 | 2,600 | 2,335 | 2,335 | 9,989 | (7,149 | ) | 10,110 | 16,820 | (6,710 | ) | |||||||||||||||||||||||||||
Other revenue | 69,004 | 70,763 | 66,303 | 58,352 | 77,311 | (8,307 | ) | 264,422 | 277,574 | (13,152 | ) | |||||||||||||||||||||||||||
Total revenues | 3,049,779 | 2,805,986 | 2,908,626 | 2,629,567 | 2,883,515 | 166,264 | 11,393,958 | 10,583,260 | 810,698 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 2,116,045 | 1,993,064 | 1,997,502 | 1,886,764 | 2,015,929 | 100,116 | 7,993,375 | 7,489,382 | 503,993 | |||||||||||||||||||||||||||||
Interest credited | 99,836 | 111,266 | 110,247 | 58,348 | 106,444 | (6,608 | ) | 379,697 | 349,546 | 30,151 | ||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 342,509 | 269,086 | 340,840 | 310,741 | 313,471 | 29,038 | 1,263,176 | 1,176,711 | 86,465 | |||||||||||||||||||||||||||||
Other operating expenses | 175,634 | 152,556 | 159,895 | 157,424 | 158,556 | 17,078 | 645,509 | 554,044 | 91,465 | |||||||||||||||||||||||||||||
Interest expense | 41,422 | 43,063 | 20,331 | 32,807 | 35,820 | 5,602 | 137,623 | 142,863 | (5,240 | ) | ||||||||||||||||||||||||||||
Collateral finance and securitization expense | 6,431 | 6,484 | 6,587 | 6,325 | 6,182 | 249 | 25,827 | 22,644 | 3,183 | |||||||||||||||||||||||||||||
Total benefits and expenses | 2,781,877 | 2,575,519 | 2,635,402 | 2,452,409 | 2,636,402 | 145,475 | 10,445,207 | 9,735,190 | 710,017 | |||||||||||||||||||||||||||||
Operating income before income taxes | 267,902 | 230,467 | 273,224 | 177,158 | 247,113 | 20,789 | 948,751 | 848,070 | 100,681 | |||||||||||||||||||||||||||||
Operating income tax expense | 96,643 | 71,106 | 91,996 | 56,408 | 59,163 | 37,480 | 316,153 | 280,986 | 35,167 | |||||||||||||||||||||||||||||
Operating income | $ | 171,259 | $ | 159,361 | $ | 181,228 | $ | 120,750 | $ | 187,950 | $ | (16,691 | ) | $ | 632,598 | $ | 567,084 | $ | 65,514 | |||||||||||||||||||
Wgt. average common shares outstanding (diluted) | 65,124 | 64,815 | 64,796 | 65,217 | 66,247 | (1,123) | 64,989 | 67,292 | (2,303) | |||||||||||||||||||||||||||||
Diluted earnings per share—operating income | $ | 2.63 | $ | 2.46 | $ | 2.80 | $ | 1.85 | $ | 2.84 | $ | (0.21 | ) | $ | 9.73 | $ | 8.43 | $ | 1.30 | |||||||||||||||||||
Foreign currency effect (1): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (35,247 | ) | $ | (21,049 | ) | $ | (45,665 | ) | $ | (70,207 | ) | $ | (107,975 | ) | $ | 72,728 | $ | (172,168 | ) | $ | (473,539 | ) | $ | 301,371 | |||||||||||||
Operating income before income taxes | $ | (7,911 | ) | $ | (3,236 | ) | $ | (4,247 | ) | $ | (9,762 | ) | $ | (18,672 | ) | $ | 10,761 | $ | (25,156 | ) | $ | (55,164 | ) | $ | 30,008 | |||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 6 | |
Reinsurance Group of America, Incorporated Consolidated Balance Sheets (USD thousands) | ||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
Assets | ||||||||||||||||||||
Fixed maturity securities, available-for-sale | $ | 32,093,625 | $ | 33,536,419 | $ | 33,160,976 | $ | 31,148,714 | $ | 29,642,905 | ||||||||||
Mortgage loans on real estate | 3,775,522 | 3,607,700 | 3,377,039 | 3,292,496 | 3,129,951 | |||||||||||||||
Policy loans | 1,427,602 | 1,414,963 | 1,445,410 | 1,451,857 | 1,468,796 | |||||||||||||||
Funds withheld at interest | 5,875,919 | 5,922,656 | 5,899,289 | 5,797,183 | 5,880,203 | |||||||||||||||
Short-term investments | 76,710 | 126,702 | 195,979 | 431,535 | 558,284 | |||||||||||||||
Other invested assets | 1,591,940 | 1,777,065 | 1,682,143 | 1,368,544 | 1,298,120 | |||||||||||||||
Total investments | 44,841,318 | 46,385,505 | 45,760,836 | 43,490,329 | 41,978,259 | |||||||||||||||
Cash and cash equivalents | 1,200,718 | 1,379,693 | 1,034,329 | 1,502,082 | 1,525,275 | |||||||||||||||
Accrued investment income | 347,173 | 391,837 | 368,926 | 364,432 | 339,452 | |||||||||||||||
Premiums receivable and other reinsurance balances | 1,930,755 | 1,834,362 | 1,917,844 | 1,886,293 | 1,797,504 | |||||||||||||||
Reinsurance ceded receivables | 683,972 | 694,906 | 681,425 | 688,491 | 637,859 | |||||||||||||||
Deferred policy acquisition costs | 3,338,605 | 3,406,093 | 3,401,935 | 3,490,509 | 3,392,437 | |||||||||||||||
Other assets | 755,338 | 740,102 | 711,408 | 764,488 | 712,366 | |||||||||||||||
Total assets | $ | 53,097,879 | $ | 54,832,498 | $ | 53,876,703 | $ | 52,186,624 | $ | 50,383,152 | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Future policy benefits | $ | 19,581,573 | $ | 19,634,157 | $ | 19,605,021 | $ | 19,811,921 | $ | 19,612,251 | ||||||||||
Interest-sensitive contract liabilities | 14,029,354 | 14,217,831 | 14,024,012 | 14,087,081 | 13,663,873 | |||||||||||||||
Other policy claims and benefits | 4,263,026 | 4,304,491 | 4,305,219 | 4,384,072 | 4,094,640 | |||||||||||||||
Other reinsurance balances | 388,989 | 353,426 | 344,527 | 397,375 | 296,899 | |||||||||||||||
Deferred income taxes | 2,770,640 | 3,071,995 | 2,901,264 | 2,483,584 | 2,218,328 | |||||||||||||||
Other liabilities | 1,041,880 | 1,321,017 | 1,157,252 | 1,106,531 | 1,165,071 | |||||||||||||||
Long-term debt (1) | 3,088,635 | 3,088,710 | 3,088,280 | 2,297,709 | 2,297,548 | |||||||||||||||
Collateral finance and securitization notes | 840,700 | 847,389 | 870,482 | 899,482 | 899,161 | |||||||||||||||
Total liabilities | 46,004,797 | 46,839,016 | 46,296,057 | 45,467,755 | 44,247,771 | |||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Common stock, at par value | 791 | 791 | 791 | 791 | 791 | |||||||||||||||
Additional paid-in-capital | 1,848,611 | 1,842,390 | 1,834,995 | 1,827,646 | 1,816,142 | |||||||||||||||
Retained earnings | 5,199,130 | 5,039,470 | 4,870,711 | 4,668,588 | 4,620,303 | |||||||||||||||
Treasury stock | (1,094,779 | ) | (1,101,495 | ) | (1,111,225 | ) | (1,108,539 | ) | (1,010,139 | ) | ||||||||||
Accumulated other comprehensive income (AOCI): | ||||||||||||||||||||
Accumulated currency translation adjustment, net of income taxes | (172,541 | ) | (121,709 | ) | (93,476 | ) | (103,418 | ) | (181,151 | ) | ||||||||||
Unrealized appreciation of securities, net of income taxes | 1,355,033 | 2,381,473 | 2,126,815 | 1,482,922 | 935,697 | |||||||||||||||
Pension and postretirement benefits, net of income taxes | (43,163 | ) | (47,438 | ) | (47,965 | ) | (49,121 | ) | (46,262 | ) | ||||||||||
Total stockholders’ equity | 7,093,082 | 7,993,482 | 7,580,646 | 6,718,869 | 6,135,381 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 53,097,879 | $ | 54,832,498 | $ | 53,876,703 | $ | 52,186,624 | $ | 50,383,152 | ||||||||||
Total stockholders’ equity, excluding AOCI | $ | 5,953,753 | $ | 5,781,156 | $ | 5,595,272 | $ | 5,388,486 | $ | 5,427,097 | ||||||||||
(1) The balance of long-term debt at December 31, 2016 includes current maturities of $299,945, which were previously included in short-term debt. The comparable prior periods have been revised to conform to the December 2016 presentation. | ||||||||||||||||||||
| Page 7 | |
Reinsurance Group of America, Incorporated U.S. and Latin America Traditional GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 1,430,291 | $ | 1,277,491 | $ | 1,307,395 | $ | 1,234,394 | $ | 1,370,745 | $ | 59,546 | $ | 5,249,571 | $ | 4,806,706 | $ | 442,865 | ||||||||||||||||||||
Investment income, net of related expenses | 184,674 | 167,898 | 182,238 | 165,023 | 176,174 | 8,500 | 699,833 | 636,779 | 63,054 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 2,147 | (3,394 | ) | (882 | ) | (2,100 | ) | 493 | 1,654 | (4,229 | ) | 2,306 | (6,535 | ) | ||||||||||||||||||||||||
Other revenue | 8,119 | 2,922 | 5,252 | 3,500 | 7,438 | 681 | 19,793 | 19,235 | 558 | |||||||||||||||||||||||||||||
Total revenues | 1,625,231 | 1,444,917 | 1,494,003 | 1,400,817 | 1,554,850 | 70,381 | 5,964,968 | 5,465,026 | 499,942 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 1,232,207 | 1,131,507 | 1,149,665 | 1,119,442 | 1,235,926 | (3,719 | ) | 4,632,821 | 4,366,696 | 266,125 | ||||||||||||||||||||||||||||
Interest credited | 22,156 | 20,628 | 20,845 | 21,400 | 21,682 | 474 | 85,029 | 77,500 | 7,529 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 205,358 | 184,766 | 182,285 | 177,078 | 187,277 | 18,081 | 749,487 | 673,331 | 76,156 | |||||||||||||||||||||||||||||
Other operating expenses | 34,018 | 30,935 | 29,778 | 31,799 | 30,482 | 3,536 | 126,530 | 111,728 | 14,802 | |||||||||||||||||||||||||||||
Total benefits and expenses | 1,493,739 | 1,367,836 | 1,382,573 | 1,349,719 | 1,475,367 | 18,372 | 5,593,867 | 5,229,255 | 364,612 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 131,492 | $ | 77,081 | $ | 111,430 | $ | 51,098 | $ | 79,483 | $ | 52,009 | $ | 371,101 | $ | 235,771 | $ | 135,330 | ||||||||||||||||||||
Loss and expense ratios: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 86.2 | % | 88.6 | % | 87.9 | % | 90.7 | % | 90.2 | % | (4.0 | )% | 88.3 | % | 90.8 | % | (2.5 | )% | ||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 14.4 | % | 14.5 | % | 13.9 | % | 14.3 | % | 13.7 | % | 0.7 | % | 14.3 | % | 14.0 | % | 0.3 | % | ||||||||||||||||||||
Other operating expenses | 2.4 | % | 2.4 | % | 2.3 | % | 2.6 | % | 2.2 | % | 0.2 | % | 2.4 | % | 2.3 | % | 0.1 | % | ||||||||||||||||||||
Foreign currency effect on (1): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (1,372 | ) | $ | (1,135 | ) | $ | (2,243 | ) | $ | (867 | ) | $ | (1,419 | ) | $ | 47 | $ | (5,617 | ) | $ | (4,625 | ) | $ | (992 | ) | ||||||||||||
Income before income taxes | $ | 159 | $ | (41 | ) | $ | (189 | ) | $ | (21 | ) | $ | 54 | $ | 105 | $ | (92 | ) | $ | (379 | ) | $ | 287 | |||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 8 | |
Reinsurance Group of America, Incorporated U.S. and Latin America Traditional Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 1,430,291 | $ | 1,277,491 | $ | 1,307,395 | $ | 1,234,394 | $ | 1,370,745 | $ | 59,546 | $ | 5,249,571 | $ | 4,806,706 | $ | 442,865 | ||||||||||||||||||||
Investment income, net of related expenses | 184,674 | 167,898 | 182,238 | 165,023 | 176,174 | 8,500 | 699,833 | 636,779 | 63,054 | |||||||||||||||||||||||||||||
Other revenue | 8,119 | 2,922 | 5,252 | 3,500 | 7,438 | 681 | 19,793 | 19,235 | 558 | |||||||||||||||||||||||||||||
Total revenues | 1,623,084 | 1,448,311 | 1,494,885 | 1,402,917 | 1,554,357 | 68,727 | 5,969,197 | 5,462,720 | 506,477 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 1,232,207 | 1,131,507 | 1,149,665 | 1,119,442 | 1,235,926 | (3,719 | ) | 4,632,821 | 4,366,696 | 266,125 | ||||||||||||||||||||||||||||
Interest credited | 22,156 | 20,628 | 20,845 | 21,400 | 21,682 | 474 | 85,029 | 77,500 | 7,529 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 205,358 | 184,766 | 182,285 | 177,078 | 187,277 | 18,081 | 749,487 | 673,331 | 76,156 | |||||||||||||||||||||||||||||
Other operating expenses | 34,018 | 30,935 | 29,778 | 31,799 | 30,482 | 3,536 | 126,530 | 111,728 | 14,802 | |||||||||||||||||||||||||||||
Total benefits and expenses | 1,493,739 | 1,367,836 | 1,382,573 | 1,349,719 | 1,475,367 | 18,372 | 5,593,867 | 5,229,255 | 364,612 | |||||||||||||||||||||||||||||
Operating income before income taxes | $ | 129,345 | $ | 80,475 | $ | 112,312 | $ | 53,198 | $ | 78,990 | $ | 50,355 | $ | 375,330 | $ | 233,465 | $ | 141,865 | ||||||||||||||||||||
Loss and expense ratios: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 86.2 | % | 88.6 | % | 87.9 | % | 90.7 | % | 90.2 | % | (4.0 | )% | 88.3 | % | 90.8 | % | (2.5 | )% | ||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 14.4 | % | 14.5 | % | 13.9 | % | 14.3 | % | 13.7 | % | 0.7 | % | 14.3 | % | 14.0 | % | 0.3 | % | ||||||||||||||||||||
Other operating expenses | 2.4 | % | 2.4 | % | 2.3 | % | 2.6 | % | 2.2 | % | 0.2 | % | 2.4 | % | 2.3 | % | 0.1 | % | ||||||||||||||||||||
Foreign currency effect on (1): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (1,372 | ) | $ | (1,135 | ) | $ | (2,243 | ) | $ | (867 | ) | $ | (1,419 | ) | $ | 47 | $ | (5,617 | ) | $ | (4,625 | ) | $ | (992 | ) | ||||||||||||
Income before income taxes | $ | 159 | $ | (41 | ) | $ | (189 | ) | $ | (21 | ) | $ | 54 | $ | 105 | $ | (92 | ) | $ | (379 | ) | $ | 287 | |||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 9 | |
Reinsurance Group of America, Incorporated U.S. and Latin America Financial Solutions - Asset Intensive GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 7,099 | $ | 5,369 | $ | 5,662 | $ | 6,219 | $ | 6,018 | $ | 1,081 | $ | 24,349 | $ | 22,177 | $ | 2,172 | ||||||||||||||||||||
Investment income, net of related expenses | 161,395 | 167,683 | 177,681 | 117,215 | 153,445 | 7,950 | 623,974 | 560,701 | 63,273 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 5,708 | 59,661 | 76,830 | (128,551 | ) | (31,218 | ) | 36,926 | 13,648 | (118,482 | ) | 132,130 | ||||||||||||||||||||||||||
Other revenue | 22,808 | 23,417 | 24,555 | 22,834 | 23,238 | (430 | ) | 93,614 | 105,389 | (11,775 | ) | |||||||||||||||||||||||||||
Total revenues | 197,010 | 256,130 | 284,728 | 17,717 | 151,483 | 45,527 | 755,585 | 569,785 | 185,800 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 23,593 | 18,927 | 19,507 | 19,833 | 22,605 | 988 | 81,860 | 66,146 | 15,714 | |||||||||||||||||||||||||||||
Interest credited | 33,511 | 86,742 | 68,436 | 62,558 | 71,756 | (38,245 | ) | 251,247 | 244,318 | 6,929 | ||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 60,306 | 56,497 | 97,078 | (39,656 | ) | 19,957 | 40,349 | 174,225 | 85,760 | 88,465 | ||||||||||||||||||||||||||||
Other operating expenses | 7,339 | 5,232 | 5,728 | 5,812 | 6,291 | 1,048 | 24,111 | 20,615 | 3,496 | |||||||||||||||||||||||||||||
Total benefits and expenses | 124,749 | 167,398 | 190,749 | 48,547 | 120,609 | 4,140 | 531,443 | 416,839 | 114,604 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 72,261 | $ | 88,732 | $ | 93,979 | $ | (30,830 | ) | $ | 30,874 | $ | 41,387 | $ | 224,142 | $ | 152,946 | $ | 71,196 | |||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
| Page 10 | |
Reinsurance Group of America, Incorporated U.S. and Latin America Financial Solutions - Asset Intensive Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 7,099 | $ | 5,369 | $ | 5,662 | $ | 6,219 | $ | 6,018 | $ | 1,081 | $ | 24,349 | $ | 22,177 | $ | 2,172 | ||||||||||||||||||||
Investment income, net of related expenses | 153,879 | 165,388 | 167,377 | 112,591 | 153,504 | 375 | 599,235 | 550,642 | 48,593 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | — | (1 | ) | 1 | — | (1 | ) | 1 | — | — | — | |||||||||||||||||||||||||||
Other revenue | 22,808 | 23,417 | 24,555 | 22,834 | 23,238 | (430 | ) | 93,614 | 105,389 | (11,775 | ) | |||||||||||||||||||||||||||
Total revenues | 183,786 | 194,173 | 197,595 | 141,644 | 182,759 | 1,027 | 717,198 | 678,208 | 38,990 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 23,593 | 18,927 | 19,507 | 19,833 | 22,605 | 988 | 81,860 | 66,146 | 15,714 | |||||||||||||||||||||||||||||
Interest credited | 73,475 | 86,700 | 85,800 | 33,409 | 73,168 | 307 | 279,384 | 256,900 | 22,484 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 32,681 | 24,621 | 32,237 | 37,322 | 33,099 | (418 | ) | 126,861 | 134,985 | (8,124 | ) | |||||||||||||||||||||||||||
Other operating expenses | 7,339 | 5,232 | 5,728 | 5,812 | 6,291 | 1,048 | 24,111 | 20,615 | 3,496 | |||||||||||||||||||||||||||||
Total benefits and expenses | 137,088 | 135,480 | 143,272 | 96,376 | 135,163 | 1,925 | 512,216 | 478,646 | 33,570 | |||||||||||||||||||||||||||||
Operating income before income taxes | $ | 46,698 | $ | 58,693 | $ | 54,323 | $ | 45,268 | $ | 47,596 | $ | (898 | ) | $ | 204,982 | $ | 199,562 | $ | 5,420 | |||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
| Page 11 | |
Reinsurance Group of America, Incorporated U.S. and Latin America Financial Solutions - Asset Intensive (Continued) (USD millions) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
Annuity account values: | ||||||||||||||||||||
Fixed annuities (deferred) | $ | 5,091 | $ | 5,130 | $ | 5,189 | $ | 5,210 | $ | 4,843 | ||||||||||
Net interest spread (fixed annuities) | 2.4 | % | 2.6 | % | 2.5 | % | 2.1 | % | 2.7 | % | ||||||||||
Equity-indexed annuities | $ | 4,291 | $ | 4,374 | $ | 4,402 | $ | 4,448 | $ | 4,509 | ||||||||||
Variable annuities account values | ||||||||||||||||||||
No riders | $ | 731 | $ | 739 | $ | 732 | $ | 753 | $ | 782 | ||||||||||
GMDB only | 58 | 58 | 58 | 60 | 62 | |||||||||||||||
GMIB only | 5 | 5 | 5 | 5 | 5 | |||||||||||||||
GMAB only | 28 | 29 | 29 | 31 | 33 | |||||||||||||||
GMWB only | 1,334 | 1,370 | 1,367 | 1,386 | 1,425 | |||||||||||||||
GMDB / WB | 335 | 342 | 341 | 349 | 359 | |||||||||||||||
Other | 19 | 20 | 20 | 21 | 22 | |||||||||||||||
Total variable annuities account values | $ | 2,510 | $ | 2,563 | $ | 2,552 | $ | 2,605 | $ | 2,688 | ||||||||||
Fair value of liabilities associated with living benefit riders | $ | 185 | $ | 276 | $ | 284 | $ | 255 | $ | 192 | ||||||||||
Interest-sensitive contract liabilities associated with: | ||||||||||||||||||||
Guaranteed investment contracts | $ | 554 | $ | 456 | $ | 354 | $ | 368 | $ | 322 | ||||||||||
Bank-owned life insurance (BOLI) | $ | 571 | $ | 568 | $ | 565 | $ | 562 | $ | 559 | ||||||||||
Other asset-intensive business | $ | 65 | $ | 65 | $ | 66 | $ | 66 | $ | 66 | ||||||||||
Future policy benefits associated with: | ||||||||||||||||||||
Payout annuities | $ | 1,964 | $ | 1,974 | $ | 1,978 | $ | 1,949 | $ | 1,960 | ||||||||||
| Page 12 | |
Reinsurance Group of America, Incorporated U.S. and Latin America Financial Solutions - Financial Reinsurance GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | $ | 1,092 | $ | 1,038 | $ | 2,386 | $ | 2,607 | $ | 1,702 | $ | (610 | ) | $ | 7,123 | $ | 5,479 | $ | 1,644 | |||||||||||||||||||
Other revenue | 22,227 | 18,967 | 17,963 | 18,581 | 19,133 | 3,094 | 77,738 | 68,601 | 9,137 | |||||||||||||||||||||||||||||
Total revenues | 23,319 | 20,005 | 20,349 | 21,188 | 20,835 | 2,484 | 84,861 | 74,080 | 10,781 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 5,505 | 3,492 | 3,085 | 2,568 | 2,720 | 2,785 | 14,650 | 10,193 | 4,457 | |||||||||||||||||||||||||||||
Other operating expenses | 3,367 | 2,531 | 2,389 | 2,686 | 2,179 | 1,188 | 10,973 | 8,870 | 2,103 | |||||||||||||||||||||||||||||
Total benefits and expenses | 8,872 | 6,023 | 5,474 | 5,254 | 4,899 | 3,973 | 25,623 | 19,063 | 6,560 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 14,447 | $ | 13,982 | $ | 14,875 | $ | 15,934 | $ | 15,936 | $ | (1,489 | ) | $ | 59,238 | $ | 55,017 | $ | 4,221 | |||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
| Page 13 | |
Reinsurance Group of America, Incorporated U.S. and Latin America Financial Solutions - Financial Reinsurance Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | $ | 1,092 | $ | 1,038 | $ | 2,386 | $ | 2,607 | $ | 1,702 | $ | (610 | ) | $ | 7,123 | $ | 5,479 | $ | 1,644 | |||||||||||||||||||
Other revenue | 22,227 | 18,967 | 17,963 | 18,581 | 19,133 | 3,094 | 77,738 | 68,601 | 9,137 | |||||||||||||||||||||||||||||
Total revenues | 23,319 | 20,005 | 20,349 | 21,188 | 20,835 | 2,484 | 84,861 | 74,080 | 10,781 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 5,505 | 3,492 | 3,085 | 2,568 | 2,720 | 2,785 | 14,650 | 10,193 | 4,457 | |||||||||||||||||||||||||||||
Other operating expenses | 3,367 | 2,531 | 2,389 | 2,686 | 2,179 | 1,188 | 10,973 | 8,870 | 2,103 | |||||||||||||||||||||||||||||
Total benefits and expenses | 8,872 | 6,023 | 5,474 | 5,254 | 4,899 | 3,973 | 25,623 | 19,063 | 6,560 | |||||||||||||||||||||||||||||
Operating income before income taxes | $ | 14,447 | $ | 13,982 | $ | 14,875 | $ | 15,934 | $ | 15,936 | $ | (1,489 | ) | $ | 59,238 | $ | 55,017 | $ | 4,221 | |||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
| Page 14 | |
Reinsurance Group of America, Incorporated Canada Traditional GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 241,918 | $ | 231,154 | $ | 240,107 | $ | 215,463 | $ | 201,384 | $ | 40,534 | $ | 928,642 | $ | 838,894 | $ | 89,748 | ||||||||||||||||||||
Investment income, net of related expenses | 44,806 | 45,239 | 46,859 | 42,023 | 42,938 | 1,868 | 178,927 | 182,621 | (3,694 | ) | ||||||||||||||||||||||||||||
Investment related gains (losses), net | 2,771 | 3,832 | 2,285 | 1,640 | 1,027 | 1,744 | 10,528 | (1,503 | ) | 12,031 | ||||||||||||||||||||||||||||
Other revenue | 638 | 734 | (339 | ) | (1,126 | ) | 1,131 | (493 | ) | (93 | ) | 3,000 | (3,093 | ) | ||||||||||||||||||||||||
Total revenues | 290,133 | 280,959 | 288,912 | 258,000 | 246,480 | 43,653 | 1,118,004 | 1,023,012 | 94,992 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 182,912 | 175,618 | 176,478 | 172,401 | 148,543 | 34,369 | 707,409 | 670,459 | 36,950 | |||||||||||||||||||||||||||||
Interest credited | 2 | 8 | 7 | 2 | 4 | (2 | ) | 19 | 18 | 1 | ||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 60,074 | 61,019 | 60,021 | 57,138 | 43,226 | 16,848 | 238,252 | 192,729 | 45,523 | |||||||||||||||||||||||||||||
Other operating expenses | 10,119 | 10,039 | 9,097 | 8,364 | 10,067 | 52 | 37,619 | 35,631 | 1,988 | |||||||||||||||||||||||||||||
Total benefits and expenses | 253,107 | 246,684 | 245,603 | 237,905 | 201,840 | 51,267 | 983,299 | 898,837 | 84,462 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 37,026 | $ | 34,275 | $ | 43,309 | $ | 20,095 | $ | 44,640 | $ | (7,614 | ) | $ | 134,705 | $ | 124,175 | $ | 10,530 | |||||||||||||||||||
Loss and expense ratios: | ||||||||||||||||||||||||||||||||||||||
Loss ratios (creditor business) | 22.5 | % | 27.0 | % | 32.2 | % | 25.8 | % | 28.2 | % | (5.7 | )% | 26.9 | % | 31.1 | % | (4.2 | )% | ||||||||||||||||||||
Loss ratios (excluding creditor business) | 92.2 | % | 93.1 | % | 87.4 | % | 98.5 | % | 82.5 | % | 9.7 | % | 92.6 | % | 91.7 | % | 0.9 | % | ||||||||||||||||||||
Claims and other policy benefits / (net premiums + investment income) | 63.8 | % | 63.5 | % | 61.5 | % | 67.0 | % | 60.8 | % | 3.0 | % | 63.9 | % | 65.6 | % | (1.7 | )% | ||||||||||||||||||||
Policy acquisition costs and other insurance expenses (creditor business) | 67.5 | % | 65.7 | % | 64.3 | % | 66.9 | % | 66.2 | % | 1.3 | % | 66.1 | % | 63.7 | % | 2.4 | % | ||||||||||||||||||||
Policy acquisition costs and other insurance expenses (excluding creditor business) | 11.5 | % | 12.6 | % | 11.8 | % | 12.7 | % | 12.9 | % | (1.4 | )% | 12.2 | % | 13.2 | % | (1.0 | )% | ||||||||||||||||||||
Other operating expenses | 4.2 | % | 4.3 | % | 3.8 | % | 3.9 | % | 5.0 | % | (0.8 | )% | 4.1 | % | 4.0 | % | 0.1 | % | ||||||||||||||||||||
Foreign currency effect on (1): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (108 | ) | $ | 724 | $ | (11,615 | ) | $ | (22,010 | ) | $ | (35,018 | ) | $ | 34,910 | $ | (33,009 | ) | $ | (130,360 | ) | $ | 97,351 | ||||||||||||||
Income before income taxes | $ | (483 | ) | $ | 104 | $ | (2,247 | ) | $ | (3,129 | ) | $ | (7,658 | ) | $ | 7,175 | $ | (5,755 | ) | $ | (20,338 | ) | $ | 14,583 | ||||||||||||||
Creditor reinsurance net premiums | $ | 57,471 | $ | 59,983 | $ | 60,275 | $ | 54,854 | $ | 32,484 | $ | 24,987 | $ | 232,583 | $ | 162,629 | $ | 69,954 | ||||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
Note: The loss ratios on creditor reinsurance business are normally lower than traditional reinsurance, while allowances are normally higher as a percentage of premiums. | ||||||||||||||||||||||||||||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 15 | |
Reinsurance Group of America, Incorporated Canada Traditional Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 241,918 | $ | 231,154 | $ | 240,107 | $ | 215,463 | $ | 201,384 | $ | 40,534 | $ | 928,642 | $ | 838,894 | $ | 89,748 | ||||||||||||||||||||
Investment income, net of related expenses | 44,084 | 44,212 | 45,506 | 41,664 | 43,125 | 959 | 175,466 | 176,310 | (844 | ) | ||||||||||||||||||||||||||||
Investment related gains, net | 1,221 | 1,208 | 1,236 | 1,268 | 1,286 | (65 | ) | 4,933 | 4,444 | 489 | ||||||||||||||||||||||||||||
Other revenue | 638 | 734 | (339 | ) | (1,126 | ) | 1,131 | (493 | ) | (93 | ) | 3,000 | (3,093 | ) | ||||||||||||||||||||||||
Total revenues | 287,861 | 277,308 | 286,510 | 257,269 | 246,926 | 40,935 | 1,108,948 | 1,022,648 | 86,300 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 182,912 | 175,618 | 176,478 | 172,401 | 148,543 | 34,369 | 707,409 | 670,459 | 36,950 | |||||||||||||||||||||||||||||
Interest credited | 2 | 8 | 7 | 2 | 4 | (2 | ) | 19 | 18 | 1 | ||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 60,074 | 61,019 | 60,021 | 57,138 | 43,226 | 16,848 | 238,252 | 192,729 | 45,523 | |||||||||||||||||||||||||||||
Other operating expenses | 10,119 | 10,039 | 9,097 | 8,364 | 10,067 | 52 | 37,619 | 35,631 | 1,988 | |||||||||||||||||||||||||||||
Total benefits and expenses | 253,107 | 246,684 | 245,603 | 237,905 | 201,840 | 51,267 | 983,299 | 898,837 | 84,462 | |||||||||||||||||||||||||||||
Operating income before income taxes | $ | 34,754 | $ | 30,624 | $ | 40,907 | $ | 19,364 | $ | 45,086 | $ | (10,332 | ) | $ | 125,649 | $ | 123,811 | $ | 1,838 | |||||||||||||||||||
Loss and expense ratios: | ||||||||||||||||||||||||||||||||||||||
Loss ratios (creditor business) | 22.5 | % | 27.0 | % | 32.2 | % | 25.8 | % | 28.2 | % | (5.7 | )% | 26.9 | % | 31.1 | % | (4.2 | )% | ||||||||||||||||||||
Loss ratios (excluding creditor business) | 92.2 | % | 93.1 | % | 87.4 | % | 98.5 | % | 82.5 | % | 9.7 | % | 92.6 | % | 91.7 | % | 0.9 | % | ||||||||||||||||||||
Claims and other policy benefits / (net premiums + investment income) | 64.0 | % | 63.8 | % | 61.8 | % | 67.0 | % | 60.8 | % | 3.2 | % | 64.1 | % | 66.0 | % | (1.9 | )% | ||||||||||||||||||||
Policy acquisition costs and other insurance expenses (creditor business) | 67.5 | % | 65.7 | % | 64.3 | % | 66.9 | % | 66.2 | % | 1.3 | % | 66.1 | % | 63.7 | % | 2.4 | % | ||||||||||||||||||||
Policy acquisition costs and other insurance expenses (excluding creditor business) | 11.5 | % | 12.6 | % | 11.8 | % | 12.7 | % | 12.9 | % | (1.4 | )% | 12.2 | % | 13.2 | % | (1.0 | )% | ||||||||||||||||||||
Other operating expenses | 4.2 | % | 4.3 | % | 3.8 | % | 3.9 | % | 5.0 | % | (0.8 | )% | 4.1 | % | 4.2 | % | (0.1 | )% | ||||||||||||||||||||
Foreign currency effect on (1): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (108 | ) | $ | 724 | $ | (11,615 | ) | $ | (22,010 | ) | $ | (35,018 | ) | $ | 34,910 | $ | (33,009 | ) | $ | (130,360 | ) | $ | 97,351 | ||||||||||||||
Operating income before income taxes | $ | (505 | ) | $ | 104 | $ | (2,130 | ) | $ | (3,701 | ) | $ | (7,795 | ) | $ | 7,290 | $ | (6,232 | ) | $ | (20,651 | ) | $ | 14,419 | ||||||||||||||
Creditor reinsurance net premiums | $ | 57,471 | $ | 59,983 | $ | 60,275 | $ | 54,854 | $ | 32,484 | $ | 24,987 | $ | 232,583 | $ | 162,629 | $ | 69,954 | ||||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
Note: The loss ratios on creditor reinsurance business are normally lower than traditional reinsurance, while allowances are normally higher as a percentage of premiums. | ||||||||||||||||||||||||||||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 16 | |
Reinsurance Group of America, Incorporated Canada Financial Solutions (1) GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 9,612 | $ | 9,946 | $ | 10,192 | $ | 8,951 | $ | 9,002 | $ | 610 | $ | 38,701 | $ | 37,969 | $ | 732 | ||||||||||||||||||||
Investment income, net of related expenses | 1,043 | 1,037 | 228 | 384 | 328 | 715 | 2,692 | 1,436 | 1,256 | |||||||||||||||||||||||||||||
Other revenue | 1,386 | 1,376 | 1,434 | 1,349 | 1,332 | 54 | 5,545 | 5,629 | (84 | ) | ||||||||||||||||||||||||||||
Total revenues | 12,041 | 12,359 | 11,854 | 10,684 | 10,662 | 1,379 | 46,938 | 45,034 | 1,904 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 7,270 | 10,567 | 8,834 | 9,604 | 6,708 | 562 | 36,275 | 29,251 | 7,024 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 229 | 285 | 513 | 204 | 145 | 84 | 1,231 | 552 | 679 | |||||||||||||||||||||||||||||
Other operating expenses | 477 | 347 | 379 | 284 | 389 | 88 | 1,487 | 1,329 | 158 | |||||||||||||||||||||||||||||
Total benefits and expenses | 7,976 | 11,199 | 9,726 | 10,092 | 7,242 | 734 | 38,993 | 31,132 | 7,861 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 4,065 | $ | 1,160 | $ | 2,128 | $ | 592 | $ | 3,420 | $ | 645 | $ | 7,945 | $ | 13,902 | $ | (5,957 | ) | |||||||||||||||||||
Foreign currency effect on (2): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (3 | ) | $ | 33 | $ | (491 | ) | $ | (915 | ) | $ | (1,570 | ) | $ | 1,567 | $ | (1,376 | ) | $ | (5,978 | ) | $ | 4,602 | ||||||||||||||
Income before income taxes | $ | 13 | $ | (9 | ) | $ | (106 | ) | $ | (575 | ) | $ | (623 | ) | $ | 636 | $ | (677 | ) | $ | (1,930 | ) | $ | 1,253 | ||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Canada Financial Solutions operations includes longevity and financial reinsurance transactions. | ||||||||||||||||||||||||||||||||||||||
(2) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 17 | |
Reinsurance Group of America, Incorporated Canada Financial Solutions (1) Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 9,612 | $ | 9,946 | $ | 10,192 | $ | 8,951 | $ | 9,002 | $ | 610 | $ | 38,701 | $ | 37,969 | $ | 732 | ||||||||||||||||||||
Investment income, net of related expenses | 1,043 | 1,037 | 228 | 384 | 328 | 715 | 2,692 | 1,436 | 1,256 | |||||||||||||||||||||||||||||
Other revenue | 1,386 | 1,376 | 1,434 | 1,349 | 1,332 | 54 | 5,545 | 5,629 | (84 | ) | ||||||||||||||||||||||||||||
Total revenues | 12,041 | 12,359 | 11,854 | 10,684 | 10,662 | 1,379 | 46,938 | 45,034 | 1,904 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 7,270 | 10,567 | 8,834 | 9,604 | 6,708 | 562 | 36,275 | 29,251 | 7,024 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 229 | 285 | 513 | 204 | 145 | 84 | 1,231 | 552 | 679 | |||||||||||||||||||||||||||||
Other operating expenses | 477 | 347 | 379 | 284 | 389 | 88 | 1,487 | 1,329 | 158 | |||||||||||||||||||||||||||||
Total benefits and expenses | 7,976 | 11,199 | 9,726 | 10,092 | 7,242 | 734 | 38,993 | 31,132 | 7,861 | |||||||||||||||||||||||||||||
Operating income before income taxes | $ | 4,065 | $ | 1,160 | $ | 2,128 | $ | 592 | $ | 3,420 | $ | 645 | $ | 7,945 | $ | 13,902 | $ | (5,957 | ) | |||||||||||||||||||
Foreign currency effect on (2): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (3 | ) | $ | 33 | $ | (491 | ) | $ | (915 | ) | $ | (1,570 | ) | $ | 1,567 | $ | (1,376 | ) | $ | (5,978 | ) | $ | 4,602 | ||||||||||||||
Operating income before income taxes | $ | 13 | $ | (9 | ) | $ | (106 | ) | $ | (575 | ) | $ | (623 | ) | $ | 636 | $ | (677 | ) | $ | (1,930 | ) | $ | 1,253 | ||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Canada Financial Solutions operations includes longevity and financial reinsurance transactions. | ||||||||||||||||||||||||||||||||||||||
(2) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 18 | |
Reinsurance Group of America, Incorporated Europe, Middle East and Africa Traditional GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 301,252 | $ | 275,514 | $ | 286,861 | $ | 276,435 | $ | 299,938 | $ | 1,314 | $ | 1,140,062 | $ | 1,121,540 | $ | 18,522 | ||||||||||||||||||||
Investment income, net of related expenses | 11,745 | 13,067 | 13,321 | 12,168 | 14,123 | (2,378 | ) | 50,301 | 51,370 | (1,069 | ) | |||||||||||||||||||||||||||
Investment related gains (losses), net | — | — | — | 5 | 7,527 | (7,527 | ) | 5 | 8,397 | (8,392 | ) | |||||||||||||||||||||||||||
Other revenue | 1,806 | 489 | 1,460 | 1,026 | 5,380 | (3,574 | ) | 4,781 | 9,435 | (4,654 | ) | |||||||||||||||||||||||||||
Total revenues | 314,803 | 289,070 | 301,642 | 289,634 | 326,968 | (12,165 | ) | 1,195,149 | 1,190,742 | 4,407 | ||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 253,663 | 241,763 | 252,336 | 251,243 | 260,874 | (7,211 | ) | 999,005 | 969,596 | 29,409 | ||||||||||||||||||||||||||||
Interest credited | — | — | — | — | 8,126 | (8,126 | ) | — | 9,629 | (9,629 | ) | |||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 17,383 | 14,133 | 17,550 | 14,782 | 19,171 | (1,788 | ) | 63,848 | 63,042 | 806 | ||||||||||||||||||||||||||||
Other operating expenses | 27,931 | 24,659 | 24,922 | 24,725 | 25,938 | 1,993 | 102,237 | 100,065 | 2,172 | |||||||||||||||||||||||||||||
Total benefits and expenses | 298,977 | 280,555 | 294,808 | 290,750 | 314,109 | (15,132 | ) | 1,165,090 | 1,142,332 | 22,758 | ||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 15,826 | $ | 8,515 | $ | 6,834 | $ | (1,116 | ) | $ | 12,859 | $ | 2,967 | $ | 30,059 | $ | 48,410 | $ | (18,351 | ) | ||||||||||||||||||
Loss and expense ratios: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 84.2 | % | 87.7 | % | 88.0 | % | 90.9 | % | 87.0 | % | (2.8 | )% | 87.6 | % | 86.5 | % | 1.1 | % | ||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 5.8 | % | 5.1 | % | 6.1 | % | 5.3 | % | 6.4 | % | (0.6 | )% | 5.6 | % | 5.6 | % | — | % | ||||||||||||||||||||
Other operating expenses | 9.3 | % | 9.0 | % | 8.7 | % | 8.9 | % | 8.6 | % | 0.7 | % | 9.0 | % | 8.9 | % | 0.1 | % | ||||||||||||||||||||
Foreign currency effect on (1): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (37,351 | ) | $ | (32,564 | ) | $ | (20,223 | ) | $ | (23,009 | ) | $ | (24,499 | ) | $ | (12,852 | ) | $ | (113,147 | ) | $ | (119,234 | ) | $ | 6,087 | ||||||||||||
Income (loss) before income taxes | $ | (1,021 | ) | $ | 157 | $ | 45 | $ | (184 | ) | $ | (1,285 | ) | $ | 264 | $ | (1,003 | ) | $ | (4,152 | ) | $ | 3,149 | |||||||||||||||
Critical illness net premiums | $ | 46,455 | $ | 49,531 | $ | 53,805 | $ | 53,643 | $ | 58,610 | $ | (12,155 | ) | $ | 203,434 | $ | 233,176 | $ | (29,742 | ) | ||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 19 | |
Reinsurance Group of America, Incorporated Europe, Middle East and Africa Traditional Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 301,252 | $ | 275,514 | $ | 286,861 | $ | 276,435 | $ | 299,938 | $ | 1,314 | $ | 1,140,062 | $ | 1,121,540 | $ | 18,522 | ||||||||||||||||||||
Investment income, net of related expenses | 11,745 | 13,067 | 13,321 | 12,168 | 14,123 | (2,378 | ) | 50,301 | 51,370 | (1,069 | ) | |||||||||||||||||||||||||||
Investment related gains (losses), net | — | — | — | — | 7,527 | (7,527 | ) | — | 8,059 | (8,059 | ) | |||||||||||||||||||||||||||
Other revenue | 1,806 | 489 | 1,460 | 1,026 | 5,380 | (3,574 | ) | 4,781 | 9,435 | (4,654 | ) | |||||||||||||||||||||||||||
Total revenues | 314,803 | 289,070 | 301,642 | 289,629 | 326,968 | (12,165 | ) | 1,195,144 | 1,190,404 | 4,740 | ||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 253,663 | 241,763 | 252,336 | 251,243 | 260,874 | (7,211 | ) | 999,005 | 969,596 | 29,409 | ||||||||||||||||||||||||||||
Interest credited | — | — | — | — | 8,126 | (8,126 | ) | — | 9,629 | (9,629 | ) | |||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 17,383 | 14,133 | 17,550 | 14,782 | 19,171 | (1,788 | ) | 63,848 | 63,042 | 806 | ||||||||||||||||||||||||||||
Other operating expenses | 27,931 | 24,659 | 24,922 | 24,725 | 25,938 | 1,993 | 102,237 | 100,065 | 2,172 | |||||||||||||||||||||||||||||
Total benefits and expenses | 298,977 | 280,555 | 294,808 | 290,750 | 314,109 | (15,132 | ) | 1,165,090 | 1,142,332 | 22,758 | ||||||||||||||||||||||||||||
Operating income (loss) before income taxes | $ | 15,826 | $ | 8,515 | $ | 6,834 | $ | (1,121 | ) | $ | 12,859 | $ | 2,967 | $ | 30,054 | $ | 48,072 | $ | (18,018 | ) | ||||||||||||||||||
Loss and expense ratios: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 84.2 | % | 87.7 | % | 88.0 | % | 90.9 | % | 87.0 | % | (2.8 | )% | 87.6 | % | 86.5 | % | 1.1 | % | ||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 5.8 | % | 5.1 | % | 6.1 | % | 5.3 | % | 6.4 | % | (0.6 | )% | 5.6 | % | 5.6 | % | — | % | ||||||||||||||||||||
Other operating expenses | 9.3 | % | 9.0 | % | 8.7 | % | 8.9 | % | 8.6 | % | 0.7 | % | 9.0 | % | 8.9 | % | 0.1 | % | ||||||||||||||||||||
Foreign currency effect on (1): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (37,351 | ) | $ | (32,564 | ) | $ | (20,223 | ) | $ | (23,009 | ) | $ | (24,499 | ) | $ | (12,852 | ) | $ | (113,147 | ) | $ | (119,234 | ) | $ | 6,087 | ||||||||||||
Operating (loss) income before income taxes | $ | (1,021 | ) | $ | 157 | $ | 46 | $ | (194 | ) | $ | (1,285 | ) | $ | 264 | $ | (1,012 | ) | $ | (4,072 | ) | $ | 3,060 | |||||||||||||||
Critical illness net premiums | $ | 46,455 | $ | 49,531 | $ | 53,805 | $ | 53,643 | $ | 58,610 | $ | (12,155 | ) | $ | 203,434 | $ | 233,176 | $ | (29,742 | ) | ||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 20 | |
Reinsurance Group of America, Incorporated Europe, Middle East and Africa Financial Solutions (1) GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 54,163 | $ | 47,018 | $ | 43,484 | $ | 35,606 | $ | 47,152 | $ | 7,011 | $ | 180,271 | $ | 171,830 | $ | 8,441 | ||||||||||||||||||||
Investment income, net of related expenses | 29,994 | 33,187 | 33,417 | 28,684 | 23,468 | 6,526 | 125,282 | 73,432 | 51,850 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 4,914 | 8,159 | 1,468 | (1,004 | ) | 9,261 | (4,347 | ) | 13,537 | 10,170 | 3,367 | |||||||||||||||||||||||||||
Other revenue | 2,962 | 11,388 | 2,608 | 4,470 | 6,863 | (3,901 | ) | 21,428 | 31,234 | (9,806 | ) | |||||||||||||||||||||||||||
Total revenues | 92,033 | 99,752 | 80,977 | 67,756 | 86,744 | 5,289 | 340,518 | 286,666 | 53,852 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 38,631 | 45,805 | 44,004 | 36,443 | 52,064 | (13,433 | ) | 164,883 | 161,917 | 2,966 | ||||||||||||||||||||||||||||
Interest credited | 4,217 | 5,540 | 2,966 | 408 | — | 4,217 | 13,131 | — | 13,131 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | (220 | ) | (304 | ) | 723 | (193 | ) | (325 | ) | 105 | 6 | (1,100 | ) | 1,106 | ||||||||||||||||||||||||
Other operating expenses | 8,077 | 4,925 | 5,815 | 5,674 | 6,860 | 1,217 | 24,491 | 17,404 | 7,087 | |||||||||||||||||||||||||||||
Total benefits and expenses | 50,705 | 55,966 | 53,508 | 42,332 | 58,599 | (7,894 | ) | 202,511 | 178,221 | 24,290 | ||||||||||||||||||||||||||||
Income before income taxes | $ | 41,328 | $ | 43,786 | $ | 27,469 | $ | 25,424 | $ | 28,145 | $ | 13,183 | $ | 138,007 | $ | 108,445 | $ | 29,562 | ||||||||||||||||||||
Foreign currency effect on (2): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (9,059 | ) | $ | (8,262 | ) | $ | (3,127 | ) | $ | (2,022 | ) | $ | (2,062 | ) | $ | (6,997 | ) | $ | (22,470 | ) | $ | (12,562 | ) | $ | (9,908 | ) | |||||||||||
Income before income taxes | $ | (9,274 | ) | $ | (6,193 | ) | $ | (1,991 | ) | $ | (1,924 | ) | $ | (1,807 | ) | $ | (7,467 | ) | $ | (19,382 | ) | $ | (11,272 | ) | $ | (8,110 | ) | |||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Europe, Middle East and Africa Financial Solutions operations includes asset intensive, financial reinsurance, capital motivated and longevity closed block business. | ||||||||||||||||||||||||||||||||||||||
(2) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 21 | |
Reinsurance Group of America, Incorporated Europe, Middle East and Africa Financial Solutions (1) Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 54,163 | $ | 47,018 | $ | 43,484 | $ | 35,606 | $ | 47,152 | $ | 7,011 | $ | 180,271 | $ | 171,830 | $ | 8,441 | ||||||||||||||||||||
Investment income, net of related expenses | 25,777 | 27,647 | 30,451 | 28,276 | 23,468 | 2,309 | 112,151 | 73,432 | 38,719 | |||||||||||||||||||||||||||||
Other revenue | 3,276 | 9,706 | 2,735 | 3,653 | 6,758 | (3,482 | ) | 19,370 | 31,045 | (11,675 | ) | |||||||||||||||||||||||||||
Total revenues | 83,216 | 84,371 | 76,670 | 67,535 | 77,378 | 5,838 | 311,792 | 276,307 | 35,485 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 38,631 | 45,805 | 44,004 | 36,443 | 52,064 | (13,433 | ) | 164,883 | 161,917 | 2,966 | ||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | (220 | ) | (304 | ) | 723 | (193 | ) | (325 | ) | 105 | 6 | (1,100 | ) | 1,106 | ||||||||||||||||||||||||
Other operating expenses | 8,077 | 4,925 | 5,815 | 5,674 | 6,860 | 1,217 | 24,491 | 17,404 | 7,087 | |||||||||||||||||||||||||||||
Total benefits and expenses | 46,488 | 50,426 | 50,542 | 41,924 | 58,599 | (12,111 | ) | 189,380 | 178,221 | 11,159 | ||||||||||||||||||||||||||||
Operating income before income taxes | $ | 36,728 | $ | 33,945 | $ | 26,128 | $ | 25,611 | $ | 18,779 | $ | 17,949 | $ | 122,412 | $ | 98,086 | $ | 24,326 | ||||||||||||||||||||
Foreign currency effect on (2): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | (9,059 | ) | $ | (8,262 | ) | $ | (3,127 | ) | $ | (2,022 | ) | $ | (2,062 | ) | $ | (6,997 | ) | $ | (22,470 | ) | $ | (12,562 | ) | $ | (9,908 | ) | |||||||||||
Operating income before income taxes | $ | (8,168 | ) | $ | (4,742 | ) | $ | (1,819 | ) | $ | (1,978 | ) | $ | (1,441 | ) | $ | (6,727 | ) | $ | (16,707 | ) | $ | (10,828 | ) | $ | (5,879 | ) | |||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Europe, Middle East and Africa's Financial Solutions operations includes asset intensive, financial reinsurance, capital motivated and longevity closed block business. | ||||||||||||||||||||||||||||||||||||||
(2) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 22 | |
Reinsurance Group of America, Incorporated Asia Pacific Traditional GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 448,283 | $ | 404,451 | $ | 454,629 | $ | 374,142 | $ | 388,663 | $ | 59,620 | $ | 1,681,505 | $ | 1,551,586 | $ | 129,919 | ||||||||||||||||||||
Investment income, net of related expenses | 21,448 | 21,273 | 20,461 | 19,867 | 20,276 | 1,172 | 83,049 | 80,549 | 2,500 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | — | — | — | 14 | 1,706 | (1,706 | ) | 14 | — | 14 | ||||||||||||||||||||||||||||
Other revenue | 2,002 | 1,923 | 2,481 | 176 | 553 | 1,449 | 6,582 | 6,222 | 360 | |||||||||||||||||||||||||||||
Total revenues | 471,733 | 427,647 | 477,571 | 394,199 | 411,198 | 60,535 | 1,771,150 | 1,638,357 | 132,793 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 368,091 | 365,115 | 338,447 | 274,298 | 284,269 | 83,822 | 1,345,951 | 1,208,984 | 136,967 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 46,604 | 4,157 | 67,908 | 44,367 | 49,747 | (3,143 | ) | 163,036 | 187,976 | (24,940 | ) | |||||||||||||||||||||||||||
Other operating expenses | 38,574 | 38,553 | 36,734 | 34,374 | 39,767 | (1,193 | ) | 148,235 | 135,743 | 12,492 | ||||||||||||||||||||||||||||
Total benefits and expenses | 453,269 | 407,825 | 443,089 | 353,039 | 373,783 | 79,486 | 1,657,222 | 1,532,703 | 124,519 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 18,464 | $ | 19,822 | $ | 34,482 | $ | 41,160 | $ | 37,415 | $ | (18,951 | ) | $ | 113,928 | $ | 105,654 | $ | 8,274 | |||||||||||||||||||
Loss and Expense Ratios: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 82.1 | % | 90.3 | % | 74.4 | % | 73.3 | % | 73.1 | % | 9.0 | % | 80.0 | % | 77.9 | % | 2.1 | % | ||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 10.4 | % | 1.0 | % | 14.9 | % | 11.9 | % | 12.8 | % | (2.4 | )% | 9.7 | % | 12.1 | % | (2.4 | )% | ||||||||||||||||||||
Other operating expenses | 8.6 | % | 9.5 | % | 8.1 | % | 9.2 | % | 10.2 | % | (1.6 | )% | 8.8 | % | 8.7 | % | 0.1 | % | ||||||||||||||||||||
Foreign currency effect on (1): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 12,575 | $ | 20,095 | $ | (7,741 | ) | $ | (21,627 | ) | $ | (43,034 | ) | $ | 55,609 | $ | 3,302 | $ | (198,173 | ) | $ | 201,475 | ||||||||||||||||
Income before income taxes | $ | 1,143 | $ | 331 | $ | 506 | $ | (2,735 | ) | $ | (4,686 | ) | $ | 5,829 | $ | (755 | ) | $ | (8,034 | ) | $ | 7,279 | ||||||||||||||||
Critical illness net premiums | $ | 85,931 | $ | 100,641 | $ | 113,297 | $ | 98,389 | $ | 81,271 | $ | 4,660 | $ | 398,258 | $ | 312,599 | $ | 85,659 | ||||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 23 | |
Reinsurance Group of America, Incorporated Asia Pacific Traditional Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 448,283 | $ | 404,451 | $ | 454,629 | $ | 374,142 | $ | 388,663 | $ | 59,620 | $ | 1,681,505 | $ | 1,551,586 | $ | 129,919 | ||||||||||||||||||||
Investment income, net of related expenses | 21,448 | 21,273 | 20,461 | 19,867 | 20,276 | 1,172 | 83,049 | 80,549 | 2,500 | |||||||||||||||||||||||||||||
Investment related losses, net | — | — | — | (2 | ) | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||||||
Other revenue | 2,002 | 1,923 | 2,481 | 176 | 553 | 1,449 | 6,582 | 6,222 | 360 | |||||||||||||||||||||||||||||
Total revenues | 471,733 | 427,647 | 477,571 | 394,183 | 409,492 | 62,241 | 1,771,134 | 1,638,357 | 132,777 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 368,091 | 365,115 | 338,447 | 274,298 | 284,269 | 83,822 | 1,345,951 | 1,208,984 | 136,967 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 46,604 | 4,157 | 67,908 | 44,367 | 49,747 | (3,143 | ) | 163,036 | 187,976 | (24,940 | ) | |||||||||||||||||||||||||||
Other operating expenses | 38,574 | 38,553 | 36,734 | 34,374 | 39,767 | (1,193 | ) | 148,235 | 135,743 | 12,492 | ||||||||||||||||||||||||||||
Total benefits and expenses | 453,269 | 407,825 | 443,089 | 353,039 | 373,783 | 79,486 | 1,657,222 | 1,532,703 | 124,519 | |||||||||||||||||||||||||||||
Operating income before income taxes | $ | 18,464 | $ | 19,822 | $ | 34,482 | $ | 41,144 | $ | 35,709 | $ | (17,245 | ) | $ | 113,912 | $ | 105,654 | $ | 8,258 | |||||||||||||||||||
Loss and Expense Ratios: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 82.1 | % | 90.3 | % | 74.4 | % | 73.3 | % | 73.1 | % | 9.0 | % | 80.0 | % | 77.9 | % | 2.1 | % | ||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 10.4 | % | 1.0 | % | 14.9 | % | 11.9 | % | 12.8 | % | (2.4 | )% | 9.7 | % | 12.1 | % | (2.4 | )% | ||||||||||||||||||||
Other operating expenses | 8.6 | % | 9.5 | % | 8.1 | % | 9.2 | % | 10.2 | % | (1.6 | )% | 8.8 | % | 8.7 | % | 0.1 | % | ||||||||||||||||||||
Foreign currency effect on (1): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 12,575 | $ | 20,095 | $ | (7,741 | ) | $ | (21,627 | ) | $ | (43,034 | ) | $ | 55,609 | $ | 3,302 | $ | (198,173 | ) | $ | 201,475 | ||||||||||||||||
Operating income before income taxes | $ | 1,144 | $ | 331 | $ | 506 | $ | (2,748 | ) | $ | (4,204 | ) | $ | 5,348 | $ | (767 | ) | $ | (8,034 | ) | $ | 7,267 | ||||||||||||||||
Critical illness net premiums | $ | 85,931 | $ | 100,641 | $ | 113,297 | $ | 98,389 | $ | 81,271 | $ | 4,660 | $ | 398,258 | $ | 312,599 | $ | 85,659 | ||||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 24 | |
Reinsurance Group of America, Incorporated Asia Pacific Financial Solutions (1) GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 492 | $ | 743 | $ | (1,493 | ) | $ | 5,686 | $ | 5,487 | $ | (4,995 | ) | $ | 5,428 | $ | 19,474 | $ | (14,046 | ) | |||||||||||||||||
Investment income, net of related expenses | 5,562 | 5,827 | 5,885 | 6,374 | 6,659 | (1,097 | ) | 23,648 | 18,678 | 4,970 | ||||||||||||||||||||||||||||
Investment related gains (losses), net | (4,886 | ) | 6,108 | 6,527 | 1,687 | 671 | (5,557 | ) | 9,436 | (531 | ) | 9,967 | ||||||||||||||||||||||||||
Other revenue | 6,061 | 6,359 | 6,126 | 6,324 | 5,698 | 363 | 24,870 | 18,960 | 5,910 | |||||||||||||||||||||||||||||
Total revenues | 7,229 | 19,037 | 17,045 | 20,071 | 18,515 | (11,286 | ) | 63,382 | 56,581 | 6,801 | ||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 9,693 | 3,777 | 8,237 | 3,473 | 4,951 | 4,742 | 25,180 | 16,295 | 8,885 | |||||||||||||||||||||||||||||
Interest credited | 3,322 | 3,308 | 3,136 | 3,030 | 3,095 | 227 | 12,796 | 4,471 | 8,325 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 1,635 | 1,482 | 1,667 | 1,287 | 1,297 | 338 | 6,071 | 2,554 | 3,517 | |||||||||||||||||||||||||||||
Other operating expenses | 4,545 | 2,921 | 4,078 | 3,728 | 3,705 | 840 | 15,272 | 13,642 | 1,630 | |||||||||||||||||||||||||||||
Total benefits and expenses | 19,195 | 11,488 | 17,118 | 11,518 | 13,048 | 6,147 | 59,319 | 36,962 | 22,357 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | (11,966 | ) | $ | 7,549 | $ | (73 | ) | $ | 8,553 | $ | 5,467 | $ | (17,433 | ) | $ | 4,063 | $ | 19,619 | $ | (15,556 | ) | ||||||||||||||||
Foreign currency effect on (2): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 71 | $ | 60 | $ | (225 | ) | $ | 243 | $ | (373 | ) | $ | 444 | $ | 149 | $ | (2,607 | ) | $ | 2,756 | |||||||||||||||||
Income before income taxes | $ | (464 | ) | $ | 917 | $ | 233 | $ | 778 | $ | (587 | ) | $ | 123 | $ | 1,464 | $ | (2,907 | ) | $ | 4,371 | |||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Asia Pacific Financial Solutions operations includes asset intensive, financial reinsurance, and disabled life closed block business. | ||||||||||||||||||||||||||||||||||||||
(2) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 25 | |
Reinsurance Group of America, Incorporated Asia Pacific Financial Solutions (1) Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 492 | $ | 743 | $ | (1,493 | ) | $ | 5,686 | $ | 5,487 | $ | (4,995 | ) | $ | 5,428 | $ | 19,474 | $ | (14,046 | ) | |||||||||||||||||
Investment income, net of related expenses | 5,562 | 5,827 | 5,885 | 6,374 | 6,659 | (1,097 | ) | 23,648 | 18,678 | 4,970 | ||||||||||||||||||||||||||||
Investment related gains, net | 960 | 825 | 602 | 576 | 654 | 306 | 2,963 | 2,368 | 595 | |||||||||||||||||||||||||||||
Other revenue | 6,061 | 6,359 | 6,126 | 6,324 | 5,698 | 363 | 24,870 | 18,960 | 5,910 | |||||||||||||||||||||||||||||
Total revenues | 13,075 | 13,754 | 11,120 | 18,960 | 18,498 | (5,423 | ) | 56,909 | 59,480 | (2,571 | ) | |||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 9,693 | 3,777 | 8,237 | 3,473 | 4,951 | 4,742 | 25,180 | 16,295 | 8,885 | |||||||||||||||||||||||||||||
Interest credited | 3,322 | 3,308 | 3,136 | 3,030 | 3,095 | 227 | 12,796 | 4,471 | 8,325 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 1,635 | 1,482 | 1,667 | 1,287 | 1,297 | 338 | 6,071 | 2,554 | 3,517 | |||||||||||||||||||||||||||||
Other operating expenses | 4,545 | 2,921 | 4,078 | 3,728 | 3,705 | 840 | 15,272 | 13,642 | 1,630 | |||||||||||||||||||||||||||||
Total benefits and expenses | 19,195 | 11,488 | 17,118 | 11,518 | 13,048 | 6,147 | 59,319 | 36,962 | 22,357 | |||||||||||||||||||||||||||||
Operating income (loss) before income taxes | $ | (6,120 | ) | $ | 2,266 | $ | (5,998 | ) | $ | 7,442 | $ | 5,450 | $ | (11,570 | ) | $ | (2,410 | ) | $ | 22,518 | $ | (24,928 | ) | |||||||||||||||
Foreign currency effect on (2): | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 71 | $ | 60 | $ | (225 | ) | $ | 243 | $ | (373 | ) | $ | 444 | $ | 149 | $ | (2,607 | ) | $ | 2,756 | |||||||||||||||||
Operating income before income taxes | $ | 100 | $ | 451 | $ | (113 | ) | $ | 323 | $ | (774 | ) | $ | 874 | $ | 761 | $ | (3,558 | ) | $ | 4,319 | |||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Asia Pacific Financial Solutions operations includes asset intensive, financial reinsurance, and disabled life closed block business. | ||||||||||||||||||||||||||||||||||||||
(2) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 26 | |
Reinsurance Group of America, Incorporated Corporate and Other GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 53 | $ | 72 | $ | 108 | $ | 109 | $ | 112 | $ | (59 | ) | $ | 342 | $ | 565 | $ | (223 | ) | ||||||||||||||||||
Investment income, net of related expenses | 35,468 | 33,478 | 25,190 | 22,921 | 28,355 | 7,113 | 117,057 | 123,450 | (6,393 | ) | ||||||||||||||||||||||||||||
Investment related gains (losses), net | (461 | ) | 12,258 | 32,036 | 7,423 | (34,276 | ) | 33,815 | 51,256 | (65,107 | ) | 116,363 | ||||||||||||||||||||||||||
Other revenue | 706 | 4,893 | 4,653 | 2,049 | 6,665 | (5,959 | ) | 12,301 | 9,987 | 2,314 | ||||||||||||||||||||||||||||
Total revenues | 35,766 | 50,701 | 61,987 | 32,502 | 856 | 34,910 | 180,956 | 68,895 | 112,061 | |||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | (15 | ) | (15 | ) | (6 | ) | 27 | (11 | ) | (4 | ) | (9 | ) | 38 | (47 | ) | ||||||||||||||||||||||
Interest credited | 881 | 622 | 459 | 507 | 369 | 512 | 2,469 | 1,028 | 1,441 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance income | (26,740 | ) | (24,565 | ) | (25,149 | ) | (23,812 | ) | (22,886 | ) | (3,854 | ) | (100,266 | ) | (87,551 | ) | (12,715 | ) | ||||||||||||||||||||
Other operating expenses | 41,187 | 32,414 | 40,975 | 39,978 | 32,878 | 8,309 | 154,554 | 109,017 | 45,537 | |||||||||||||||||||||||||||||
Interest expense | 41,422 | 43,063 | 20,331 | 32,807 | 35,820 | 5,602 | 137,623 | 142,863 | (5,240 | ) | ||||||||||||||||||||||||||||
Collateral finance and securitization expense | 6,431 | 6,484 | 6,587 | 6,325 | 6,182 | 249 | 25,827 | 22,644 | 3,183 | |||||||||||||||||||||||||||||
Total benefits and expenses | 63,166 | 58,003 | 43,197 | 55,832 | 52,352 | 10,814 | 220,198 | 188,039 | 32,159 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | (27,400 | ) | $ | (7,302 | ) | $ | 18,790 | $ | (23,330 | ) | $ | (51,496 | ) | $ | 24,096 | $ | (39,242 | ) | $ | (119,144 | ) | $ | 79,902 | ||||||||||||||
Foreign currency effect (1): | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 401 | $ | 294 | $ | (1,941 | ) | $ | (1,409 | ) | $ | (2,642 | ) | $ | 3,043 | $ | (2,655 | ) | $ | (6,079 | ) | $ | 3,424 | |||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 27 | |
Reinsurance Group of America, Incorporated Corporate and Other Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Qtr vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 53 | $ | 72 | $ | 108 | $ | 109 | $ | 112 | $ | (59 | ) | $ | 342 | $ | 565 | $ | (223 | ) | ||||||||||||||||||
Investment income, net of related expenses | 35,468 | 33,478 | 25,190 | 22,921 | 28,355 | 7,113 | 117,057 | 123,450 | (6,393 | ) | ||||||||||||||||||||||||||||
Investment related gains, net | 659 | 568 | 496 | 493 | 523 | 136 | 2,216 | 1,949 | 267 | |||||||||||||||||||||||||||||
Other revenue | 681 | 4,870 | 4,636 | 2,035 | 6,650 | (5,969 | ) | 12,222 | 10,058 | 2,164 | ||||||||||||||||||||||||||||
Total revenues | 36,861 | 38,988 | 30,430 | 25,558 | 35,640 | 1,221 | 131,837 | 136,022 | (4,185 | ) | ||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | (15 | ) | (15 | ) | (6 | ) | 27 | (11 | ) | (4 | ) | (9 | ) | 38 | (47 | ) | ||||||||||||||||||||||
Interest credited | 881 | 622 | 459 | 507 | 369 | 512 | 2,469 | 1,028 | 1,441 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance income | (26,740 | ) | (24,565 | ) | (25,149 | ) | (23,812 | ) | (22,886 | ) | (3,854 | ) | (100,266 | ) | (87,551 | ) | (12,715 | ) | ||||||||||||||||||||
Other operating expenses | 41,187 | 32,414 | 40,975 | 39,978 | 32,878 | 8,309 | 154,554 | 109,017 | 45,537 | |||||||||||||||||||||||||||||
Interest expense | 41,422 | 43,063 | 20,331 | 32,807 | 35,820 | 5,602 | 137,623 | 142,863 | (5,240 | ) | ||||||||||||||||||||||||||||
Collateral finance and securitization expense | 6,431 | 6,484 | 6,587 | 6,325 | 6,182 | 249 | 25,827 | 22,644 | 3,183 | |||||||||||||||||||||||||||||
Total benefits and expenses | 63,166 | 58,003 | 43,197 | 55,832 | 52,352 | 10,814 | 220,198 | 188,039 | 32,159 | |||||||||||||||||||||||||||||
Operating income (loss) before income taxes | $ | (26,305 | ) | $ | (19,015 | ) | $ | (12,767 | ) | $ | (30,274 | ) | $ | (16,712 | ) | $ | (9,593 | ) | $ | (88,361 | ) | $ | (52,017 | ) | $ | (36,344 | ) | |||||||||||
Foreign currency effect (1): | ||||||||||||||||||||||||||||||||||||||
Operating income before income taxes | $ | 367 | $ | 513 | $ | (442 | ) | $ | (868 | ) | $ | (2,604 | ) | $ | 2,971 | $ | (430 | ) | $ | (5,712 | ) | $ | 5,282 | |||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
(1) Compared to comparable prior year period. | ||||||||||||||||||||||||||||||||||||||
| Page 28 | |
Reinsurance Group of America, Incorporated Summary of Segment GAAP Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr vs. PY Quarter | Year-to-date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | 2016 | 2015 | Change | |||||||||||||||||||||||||||||||
U.S. and Latin America: | ||||||||||||||||||||||||||||||||||||||
Traditional | $ | 131,492 | $ | 77,081 | $ | 111,430 | $ | 51,098 | $ | 79,483 | $ | 52,009 | $ | 371,101 | $ | 235,771 | $ | 135,330 | ||||||||||||||||||||
Financial Solutions: | ||||||||||||||||||||||||||||||||||||||
Asset Intensive | 72,261 | 88,732 | 93,979 | (30,830 | ) | 30,874 | 41,387 | 224,142 | 152,946 | 71,196 | ||||||||||||||||||||||||||||
Financial Reinsurance | 14,447 | 13,982 | 14,875 | 15,934 | 15,936 | (1,489 | ) | 59,238 | 55,017 | 4,221 | ||||||||||||||||||||||||||||
Total U.S. and Latin America | 218,200 | 179,795 | 220,284 | 36,202 | 126,293 | 91,907 | 654,481 | 443,734 | 210,747 | |||||||||||||||||||||||||||||
Canada: | ||||||||||||||||||||||||||||||||||||||
Canada Traditional | 37,026 | 34,275 | 43,309 | 20,095 | 44,640 | (7,614 | ) | 134,705 | 124,175 | 10,530 | ||||||||||||||||||||||||||||
Canada Financial Solutions | 4,065 | 1,160 | 2,128 | 592 | 3,420 | 645 | 7,945 | 13,902 | (5,957 | ) | ||||||||||||||||||||||||||||
Total Canada | 41,091 | 35,435 | 45,437 | 20,687 | 48,060 | (6,969 | ) | 142,650 | 138,077 | 4,573 | ||||||||||||||||||||||||||||
Europe, Middle East and Africa: | ||||||||||||||||||||||||||||||||||||||
Europe, Middle East and Africa Traditional | 15,826 | 8,515 | 6,834 | (1,116 | ) | 12,859 | 2,967 | 30,059 | 48,410 | (18,351 | ) | |||||||||||||||||||||||||||
Europe, Middle East and Africa Financial Solutions | 41,328 | 43,786 | 27,469 | 25,424 | 28,145 | 13,183 | 138,007 | 108,445 | 29,562 | |||||||||||||||||||||||||||||
Total Europe, Middle East and Africa | 57,154 | 52,301 | 34,303 | 24,308 | 41,004 | 16,150 | 168,066 | 156,855 | 11,211 | |||||||||||||||||||||||||||||
Asia Pacific: | ||||||||||||||||||||||||||||||||||||||
Asia Pacific Traditional | 18,464 | 19,822 | 34,482 | 41,160 | 37,415 | (18,951 | ) | 113,928 | 105,654 | 8,274 | ||||||||||||||||||||||||||||
Asia Pacific Financial Solutions | (11,966 | ) | 7,549 | (73 | ) | 8,553 | 5,467 | (17,433 | ) | 4,063 | 19,619 | (15,556 | ) | |||||||||||||||||||||||||
Total Asia Pacific | 6,498 | 27,371 | 34,409 | 49,713 | 42,882 | (36,384 | ) | 117,991 | 125,273 | (7,282 | ) | |||||||||||||||||||||||||||
Corporate and Other | (27,400 | ) | (7,302 | ) | 18,790 | (23,330 | ) | (51,496 | ) | 24,096 | (39,242 | ) | (119,144 | ) | 79,902 | |||||||||||||||||||||||
Consolidated Income before Income Taxes | $ | 295,543 | $ | 287,600 | $ | 353,223 | $ | 107,580 | $ | 206,743 | $ | 88,800 | $ | 1,043,946 | $ | 744,795 | $ | 299,151 | ||||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
| Page 29 | |
Reinsurance Group of America, Incorporated Summary of Segment Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr vs. PY Quarter | Year-to-date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | 2016 | 2015 | Change | |||||||||||||||||||||||||||||||
U.S. and Latin America: | ||||||||||||||||||||||||||||||||||||||
Traditional | $ | 129,345 | $ | 80,475 | $ | 112,312 | $ | 53,198 | $ | 78,990 | $ | 50,355 | $ | 375,330 | $ | 233,465 | $ | 141,865 | ||||||||||||||||||||
Financial Solutions: | ||||||||||||||||||||||||||||||||||||||
Asset Intensive | 46,698 | 58,693 | 54,323 | 45,268 | 47,596 | (898 | ) | 204,982 | 199,562 | 5,420 | ||||||||||||||||||||||||||||
Financial Reinsurance | 14,447 | 13,982 | 14,875 | 15,934 | 15,936 | (1,489 | ) | 59,238 | 55,017 | 4,221 | ||||||||||||||||||||||||||||
Total U.S. and Latin America | 190,490 | 153,150 | 181,510 | 114,400 | 142,522 | 47,968 | 639,550 | 488,044 | 151,506 | |||||||||||||||||||||||||||||
Canada: | ||||||||||||||||||||||||||||||||||||||
Canada Traditional | 34,754 | 30,624 | 40,907 | 19,364 | 45,086 | (10,332 | ) | 125,649 | 123,811 | 1,838 | ||||||||||||||||||||||||||||
Canada Financial Solutions | 4,065 | 1,160 | 2,128 | 592 | 3,420 | 645 | 7,945 | 13,902 | (5,957 | ) | ||||||||||||||||||||||||||||
Total Canada | 38,819 | 31,784 | 43,035 | 19,956 | 48,506 | (9,687 | ) | 133,594 | 137,713 | (4,119 | ) | |||||||||||||||||||||||||||
Europe, Middle East and Africa: | ||||||||||||||||||||||||||||||||||||||
Europe, Middle East and Africa Traditional | 15,826 | 8,515 | 6,834 | (1,121 | ) | 12,859 | 2,967 | 30,054 | 48,072 | (18,018 | ) | |||||||||||||||||||||||||||
Europe, Middle East and Africa Financial Solutions | 36,728 | 33,945 | 26,128 | 25,611 | 18,779 | 17,949 | 122,412 | 98,086 | 24,326 | |||||||||||||||||||||||||||||
Total Europe, Middle East and Africa | 52,554 | 42,460 | 32,962 | 24,490 | 31,638 | 20,916 | 152,466 | 146,158 | 6,308 | |||||||||||||||||||||||||||||
Asia Pacific: | ||||||||||||||||||||||||||||||||||||||
Asia Pacific Traditional | 18,464 | 19,822 | 34,482 | 41,144 | 35,709 | (17,245 | ) | 113,912 | 105,654 | 8,258 | ||||||||||||||||||||||||||||
Asia Pacific Financial Solutions | (6,120 | ) | 2,266 | (5,998 | ) | 7,442 | 5,450 | (11,570 | ) | (2,410 | ) | 22,518 | (24,928 | ) | ||||||||||||||||||||||||
Total Asia Pacific | 12,344 | 22,088 | 28,484 | 48,586 | 41,159 | (28,815 | ) | 111,502 | 128,172 | (16,670 | ) | |||||||||||||||||||||||||||
Corporate and Other | (26,305 | ) | (19,015 | ) | (12,767 | ) | (30,274 | ) | (16,712 | ) | (9,593 | ) | (88,361 | ) | (52,017 | ) | (36,344 | ) | ||||||||||||||||||||
Consolidated Operating Income before Income Taxes | $ | 267,902 | $ | 230,467 | $ | 273,224 | $ | 177,158 | $ | 247,113 | $ | 20,789 | $ | 948,751 | $ | 848,070 | $ | 100,681 | ||||||||||||||||||||
See appendix for reconciliation of GAAP income before income taxes to operating income before income taxes. | ||||||||||||||||||||||||||||||||||||||
| Page 30 | |
Reinsurance Group of America, Incorporated Investments (USD thousands) Cash and Invested Assets | ||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
Fixed maturity securities, available-for-sale | $ | 32,093,625 | $ | 33,536,419 | $ | 33,160,976 | $ | 31,148,714 | $ | 29,642,905 | ||||||||||
Mortgage loans on real estate | 3,775,522 | 3,607,700 | 3,377,039 | 3,292,496 | 3,129,951 | |||||||||||||||
Policy loans | 1,427,602 | 1,414,963 | 1,445,410 | 1,451,857 | 1,468,796 | |||||||||||||||
Funds withheld at interest | 5,875,919 | 5,922,656 | 5,899,289 | 5,797,183 | 5,880,203 | |||||||||||||||
Short-term investments | 76,710 | 126,702 | 195,979 | 431,535 | 558,284 | |||||||||||||||
Other invested assets | 1,591,940 | 1,777,065 | 1,682,143 | 1,368,544 | 1,298,120 | |||||||||||||||
Cash and cash equivalents | 1,200,718 | 1,379,693 | 1,034,329 | 1,502,082 | 1,525,275 | |||||||||||||||
Total cash and invested assets | $ | 46,042,036 | $ | 47,765,198 | $ | 46,795,165 | $ | 44,992,411 | $ | 43,503,534 | ||||||||||
Investment Income and Yield Summary | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr vs. PY Quarter | Year-to-Date | |||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||||
Average invested assets at amortized cost (1) | $ | 24,621,939 | $ | 24,128,430 | $ | 23,216,459 | $ | 22,379,003 | $ | 21,552,560 | $ | 3,069,379 | $ | 23,188,717 | $ | 20,784,941 | $ | 2,403,776 | |||||||||||||||||||||
Net investment income (1) | $ | 283,484 | $ | 263,111 | $ | 268,747 | $ | 245,299 | $ | 262,660 | $ | 20,824 | $ | 1,060,641 | $ | 1,002,197 | $ | 58,444 | |||||||||||||||||||||
Annualized investment yield (ratio of net investment income to average invested assets at amortized cost) (1) | 4.69 | % | 4.43 | % | 4.71 | % | 4.46 | % | 4.96 | % | (2 | ) | -0.27 | % | 4.57 | % | 4.82 | % | -0.25 | % | |||||||||||||||||||
(1) Excludes spread-related business (e.g. coinsurance of annuities). | |||||||||||||||||||||||||||||||||||||||
(2) Includes the cumulative effective of income related to a funds withheld transaction executed in the fourth quarter of 2015, retroactive to the beginning of the year. | |||||||||||||||||||||||||||||||||||||||
| Page 31 | |
Reinsurance Group of America, Incorporated Investments (USD thousands) Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Fixed Maturity and Equity Securities (Excludes Funds Withheld Portfolios) | |||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | % of Total | Other-than- temporary Impairment in AOCI | ||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
Corporate securities | $ | 18,924,711 | $ | 911,618 | $ | 217,245 | $ | 19,619,084 | 61.1 | % | $ | — | |||||||||||
Canadian and Canadian provincial governments | 2,561,605 | 1,085,982 | 3,541 | 3,644,046 | 11.4 | % | — | ||||||||||||||||
Residential mortgage-backed securities | 1,258,039 | 33,917 | 13,380 | 1,278,576 | 4.0 | % | (375 | ) | |||||||||||||||
Asset-backed securities | 1,443,822 | 9,350 | 23,828 | 1,429,344 | 4.5 | % | 275 | ||||||||||||||||
Commercial mortgage-backed securities | 1,342,440 | 28,973 | 7,759 | 1,363,654 | 4.2 | % | — | ||||||||||||||||
U.S. government and agencies | 1,518,702 | 12,644 | 63,044 | 1,468,302 | 4.6 | % | — | ||||||||||||||||
State and political subdivisions | 566,761 | 37,499 | 12,464 | 591,796 | 1.8 | % | — | ||||||||||||||||
Other foreign government, supranational, and foreign | |||||||||||||||||||||||
government-sponsored enterprises | 2,595,707 | 123,054 | 19,938 | 2,698,823 | 8.4 | % | — | ||||||||||||||||
Total fixed maturity securities | $ | 30,211,787 | $ | 2,243,037 | $ | 361,199 | $ | 32,093,625 | 100.0 | % | $ | (100 | ) | ||||||||||
Non-redeemable preferred stock | $ | 55,812 | $ | 1,648 | $ | 6,337 | $ | 51,123 | 18.6 | % | |||||||||||||
Other equity securities | 229,767 | 1,792 | 7,321 | 224,238 | 81.4 | % | |||||||||||||||||
Total equity securities | $ | 285,579 | $ | 3,440 | $ | 13,658 | $ | 275,361 | 100.0 | % | |||||||||||||
December 31, 2015 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | % of Total | Other-than- temporary Impairment in AOCI | ||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
Corporate securities | $ | 17,575,507 | $ | 599,718 | $ | 467,069 | $ | 17,708,156 | 59.7 | % | $ | — | |||||||||||
Canadian and Canadian provincial governments | 2,469,009 | 1,110,282 | 2,532 | 3,576,759 | 12.1 | % | — | ||||||||||||||||
Residential mortgage-backed securities | 1,277,998 | 45,152 | 11,673 | 1,311,477 | 4.4 | % | (300 | ) | |||||||||||||||
Asset-backed securities | 1,219,000 | 12,052 | 18,376 | 1,212,676 | 4.1 | % | 354 | ||||||||||||||||
Commercial mortgage-backed securities | 1,456,848 | 37,407 | 11,168 | 1,483,087 | 5.0 | % | (1,609 | ) | |||||||||||||||
U.S. government and agencies | 1,423,791 | 15,586 | 57,718 | 1,381,659 | 4.7 | % | — | ||||||||||||||||
State and political subdivisions | 480,067 | 40,014 | 9,067 | 511,014 | 1.7 | % | — | ||||||||||||||||
Other foreign government, supranational, and foreign | |||||||||||||||||||||||
government-sponsored enterprises | 2,420,757 | 78,964 | 41,644 | 2,458,077 | 8.3 | % | — | ||||||||||||||||
Total fixed maturity securities | $ | 28,322,977 | $ | 1,939,175 | $ | 619,247 | $ | 29,642,905 | 100.0 | % | $ | (1,555 | ) | ||||||||||
Non-redeemable preferred stock | $ | 85,645 | $ | 7,837 | $ | 5,962 | $ | 87,520 | 69.5 | % | |||||||||||||
Other equity securities | 40,584 | — | 2,242 | 38,342 | 30.5 | % | |||||||||||||||||
Total equity securities | $ | 126,229 | $ | 7,837 | $ | 8,204 | $ | 125,862 | 100.0 | % | |||||||||||||
| Page 32 | |
Reinsurance Group of America, Incorporated Investments (USD thousands) Corporate Fixed Maturities Securities by Sector (Excludes Funds Withheld Portfolios) | ||||||||||||||||||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | % of Total | Average Credit Ratings (1) | Amortized Cost | Estimated Fair Value | % of Total | Average Credit Ratings (1) | |||||||||||||||||||
Financial institutions | ||||||||||||||||||||||||||
Banking | $ | 4,167,029 | $ | 4,255,932 | 21.9 | % | A- | $ | 3,557,406 | $ | 3,641,125 | 20.5 | % | A- | ||||||||||||
Brokerage/asset managers/exchanges | 403,014 | 413,699 | 2.1 | % | A | 315,848 | 327,477 | 1.8 | % | A | ||||||||||||||||
Finance companies | 120,782 | 127,327 | 0.6 | % | A- | 68,996 | 70,947 | 0.4 | % | BBB- | ||||||||||||||||
Insurance | 1,314,077 | 1,353,008 | 6.9 | % | A- | 877,691 | 908,752 | 5.1 | % | A- | ||||||||||||||||
REITs | 582,157 | 598,366 | 3.0 | % | BBB+ | 524,424 | 540,120 | 3.1 | % | BBB+ | ||||||||||||||||
Other finance | 138,140 | 140,636 | 0.7 | % | A- | 64,426 | 66,623 | 0.4 | % | A- | ||||||||||||||||
Total financial institutions | $ | 6,725,199 | $ | 6,888,968 | 35.2 | % | $ | 5,408,791 | $ | 5,555,044 | 31.3 | % | ||||||||||||||
Industrials | ||||||||||||||||||||||||||
Basic | $ | 887,179 | $ | 923,839 | 4.7 | % | BBB | $ | 937,498 | $ | 894,466 | 5.1 | % | BBB | ||||||||||||
Capital goods | 998,749 | 1,027,098 | 5.2 | % | BBB+ | 1,090,670 | 1,091,523 | 6.2 | % | BBB+ | ||||||||||||||||
Communications | 1,841,904 | 1,928,261 | 9.8 | % | BBB | 1,891,983 | 1,912,375 | 10.8 | % | BBB | ||||||||||||||||
Consumer cyclical | 1,081,091 | 1,116,933 | 5.7 | % | BBB+ | 1,015,183 | 1,028,521 | 5.8 | % | BBB+ | ||||||||||||||||
Consumer noncyclical | 1,957,052 | 2,050,927 | 10.5 | % | A- | 1,762,018 | 1,805,347 | 10.2 | % | A- | ||||||||||||||||
Energy | 1,867,072 | 1,941,301 | 9.9 | % | BBB+ | 2,064,824 | 1,922,366 | 10.9 | % | BBB+ | ||||||||||||||||
Technology | 644,474 | 660,200 | 3.4 | % | A | 569,174 | 574,280 | 3.2 | % | A- | ||||||||||||||||
Transportation | 854,681 | 887,911 | 4.5 | % | A- | 763,055 | 777,939 | 4.4 | % | A- | ||||||||||||||||
Other industrial | 96,611 | 103,143 | 0.5 | % | A- | 117,021 | 123,100 | 0.7 | % | BBB+ | ||||||||||||||||
Total industrials | $ | 10,228,813 | $ | 10,639,613 | 54.2 | % | $ | 10,211,426 | $ | 10,129,917 | 57.3 | % | ||||||||||||||
Utilities | ||||||||||||||||||||||||||
Electric | $ | 1,432,641 | $ | 1,498,919 | 7.6 | % | A- | $ | 1,395,335 | $ | 1,444,368 | 8.2 | % | BBB+ | ||||||||||||
Natural gas | 316,447 | 338,253 | 1.7 | % | A- | 315,826 | 323,206 | 1.8 | % | A- | ||||||||||||||||
Other utility | 221,611 | 253,331 | 1.3 | % | A- | 244,129 | 255,621 | 1.4 | % | A- | ||||||||||||||||
Total utilities | $ | 1,970,699 | $ | 2,090,503 | 10.6 | % | $ | 1,955,290 | $ | 2,023,195 | 11.4 | % | ||||||||||||||
Total | $ | 18,924,711 | $ | 19,619,084 | 100.0 | % | BBB+ | $ | 17,575,507 | $ | 17,708,156 | 100.0 | % | BBB+ | ||||||||||||
(1) The Average Credit Rating designations are based on the weighted average ratings from nationally recognized statistical rating organizations (NRSRO), primarily those assigned by S&P. In instances | ||||||||||||||||||||||||||
where a S&P rating is not available, the Company will reference the rating provided by Moody’s, and in the absence of both the Company will assign equivalent ratings based on information from the National | ||||||||||||||||||||||||||
Association of Insurance Commissioners (NAIC). | ||||||||||||||||||||||||||
| Page 33 | |
Reinsurance Group of America, Incorporated
Investments
(USD thousands)
Ratings of Fixed Maturity Securities (Excludes Funds Withheld Portfolios) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
NAIC Designation (1) | Rating Agency Designation (2) | Amortized Cost | Estimated Fair Value | % of Total | Amortized Cost | Estimated Fair Value | % of Total | Amortized Cost | Estimated Fair Value | % of Total | Amortized Cost | Estimated Fair Value | % of Total | Amortized Cost | Estimated Fair Value | % of Total | |||||||||||||||||||||||||||||||||||||||||
1 | AAA/AA/A | $ | 19,813,653 | $ | 21,369,081 | 66.5 | % | $ | 19,794,556 | $ | 22,594,066 | 67.3 | % | $ | 19,755,011 | $ | 22,392,311 | 67.5 | % | $ | 18,511,837 | $ | 20,516,462 | 65.9 | % | $ | 17,801,017 | $ | 19,231,535 | 64.8 | % | ||||||||||||||||||||||||||
2 | BBB | 8,834,469 | 9,162,483 | 28.5 | % | 8,660,225 | 9,296,652 | 27.7 | % | 8,679,819 | 9,130,971 | 27.5 | % | 8,813,991 | 9,005,192 | 28.9 | % | 8,838,444 | 8,830,172 | 29.8 | % | ||||||||||||||||||||||||||||||||||||
3 | BB | 944,839 | 955,735 | 3.0 | % | 1,010,694 | 1,027,001 | 3.1 | % | 1,012,092 | 1,018,629 | 3.1 | % | 1,096,165 | 1,057,763 | 3.4 | % | 1,054,449 | 1,001,614 | 3.4 | % | ||||||||||||||||||||||||||||||||||||
4 | B | 414,087 | 411,138 | 1.3 | % | 451,456 | 441,887 | 1.3 | % | 456,457 | 431,649 | 1.3 | % | 402,872 | 372,795 | 1.2 | % | 399,417 | 359,591 | 1.2 | % | ||||||||||||||||||||||||||||||||||||
5 | CCC | 187,744 | 177,481 | 0.6 | % | 157,857 | 151,182 | 0.5 | % | 143,675 | 135,927 | 0.4 | % | 178,537 | 165,491 | 0.5 | % | 207,351 | 197,498 | 0.7 | % | ||||||||||||||||||||||||||||||||||||
6 | In or near default | 16,995 | 17,707 | 0.1 | % | 23,108 | 25,631 | 0.1 | % | 29,830 | 51,489 | 0.2 | % | 31,872 | 31,011 | 0.1 | % | 22,299 | 22,495 | 0.1 | % | ||||||||||||||||||||||||||||||||||||
Total | $ | 30,211,787 | $ | 32,093,625 | 100.0 | % | $ | 30,097,896 | $ | 33,536,419 | 100.0 | % | $ | 30,076,884 | $ | 33,160,976 | 100.0 | % | $ | 29,035,274 | $ | 31,148,714 | 100.0 | % | $ | 28,322,977 | $ | 29,642,905 | 100.0 | % | |||||||||||||||||||||||||||
(1) Structured securities held by the Company’s insurance subsidiaries that maintain the NAIC statutory basis of accounting that meet the definition of SSAP No. 43R utilize the NAIC rating methodology. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All other securities will continue to utilize the NRSRO ratings, as available, or equivalent rating based on information from the NAIC. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) The Rating Agency Designation includes all “+” or “-” at that rating level (e. g. ‘BBB’ includes ‘BBB+’, ‘BBB’, and ‘BBB-’). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Structured Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||
Agency | $ | 579,686 | $ | 602,549 | $ | 590,881 | $ | 642,041 | $ | 601,728 | $ | 659,526 | $ | 593,662 | $ | 642,617 | $ | 602,524 | $ | 634,077 | ||||||||||||||||||||
Non-agency | 678,353 | 676,027 | 656,796 | 669,651 | 623,990 | 633,252 | 737,232 | 738,280 | 675,474 | 677,400 | ||||||||||||||||||||||||||||||
Total residential mortgage-backed securities | 1,258,039 | 1,278,576 | 1,247,677 | 1,311,692 | 1,225,718 | 1,292,778 | 1,330,894 | 1,380,897 | 1,277,998 | 1,311,477 | ||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 1,342,440 | 1,363,654 | 1,402,249 | 1,475,033 | 1,441,091 | 1,507,693 | 1,466,500 | 1,508,183 | 1,456,848 | 1,483,087 | ||||||||||||||||||||||||||||||
Asset-backed securities | 1,443,822 | 1,429,344 | 1,388,263 | 1,382,574 | 1,377,736 | 1,356,677 | 1,319,616 | 1,289,381 | 1,219,000 | 1,212,676 | ||||||||||||||||||||||||||||||
Total | $ | 4,044,301 | $ | 4,071,574 | $ | 4,038,189 | $ | 4,169,299 | $ | 4,044,545 | $ | 4,157,148 | $ | 4,117,010 | $ | 4,178,461 | $ | 3,953,846 | $ | 4,007,240 | ||||||||||||||||||||
| Page 34 | |
Reinsurance Group of America, Incorporated Investments (USD thousands) Gross Unrealized Losses Aging Fixed Maturity Securities | |||||||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||
Gross Unrealized Losses | % of Total | Gross Unrealized Losses | % of Total | Gross Unrealized Losses | % of Total | Gross Unrealized Losses | % of Total | Gross Unrealized Losses | % of Total | ||||||||||||||||||||||||||
Less than 20% | $ | 328,691 | 87.7 | % | $ | 85,446 | 62.2 | % | $ | 148,844 | 74.9 | % | $ | 272,450 | 70.5 | % | $ | 458,676 | 73.1 | % | |||||||||||||||
20% or more for less than six months | 18,733 | 5.0 | % | 12,551 | 9.1 | % | 7,248 | 3.7 | % | 68,067 | 17.6 | % | 140,568 | 22.4 | % | ||||||||||||||||||||
20% or more for six months or greater | 13,775 | 3.7 | % | 32,286 | 23.5 | % | 34,078 | 17.2 | % | 36,949 | 9.6 | % | 20,003 | 3.2 | % | ||||||||||||||||||||
Total | $ | 361,199 | 96.4 | % | $ | 130,283 | 94.8 | % | $ | 190,170 | 95.8 | % | $ | 377,466 | 97.7 | % | $ | 619,247 | 98.7 | % | |||||||||||||||
Equity Securities | |||||||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||
Gross Unrealized Losses | % of Total | Gross Unrealized Losses | % of Total | Gross Unrealized Losses | % of Total | Gross Unrealized Losses | % of Total | Gross Unrealized Losses | % of Total | ||||||||||||||||||||||||||
Less than 20% | $ | 9,140 | 2.4 | % | $ | 2,588 | 1.9 | % | $ | 1,794 | 0.9 | % | $ | 2,678 | 0.7 | % | $ | 4,433 | 0.7 | % | |||||||||||||||
20% or more for less than six months | 705 | 0.2 | % | — | 0.0 | % | 1,685 | 0.8 | % | 1,672 | 0.4 | % | 1,927 | 0.3 | % | ||||||||||||||||||||
20% or more for six months or greater | 3,813 | 1.0 | % | 4,472 | 3.3 | % | 4,903 | 2.5 | % | 4,714 | 1.2 | % | 1,844 | 0.3 | % | ||||||||||||||||||||
Total | $ | 13,658 | 3.6 | % | $ | 7,060 | 5.2 | % | $ | 8,382 | 4.2 | % | $ | 9,064 | 2.3 | % | $ | 8,204 | 1.3 | % | |||||||||||||||
| Page 35 | |
Reinsurance Group of America, Incorporated Investments (USD thousands) Fixed Maturities and Equity Securities Below Amortized Cost (Excludes Funds Withheld Portfolios) | ||||||||||||||||||||||||
As of December 31, 2016 | ||||||||||||||||||||||||
Less than 12 months | Equal to or greater than 12 months | Total | ||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||||
Investment grade securities: | ||||||||||||||||||||||||
Corporate securities | $ | 4,661,706 | $ | 124,444 | $ | 549,273 | $ | 43,282 | $ | 5,210,979 | $ | 167,726 | ||||||||||||
Canadian and Canadian provincial governments | 101,578 | 3,541 | — | — | 101,578 | 3,541 | ||||||||||||||||||
Residential mortgage-backed securities | 490,473 | 9,733 | 112,216 | 3,635 | 602,689 | 13,368 | ||||||||||||||||||
Asset-backed securities | 563,259 | 12,010 | 257,166 | 9,653 | 820,425 | 21,663 | ||||||||||||||||||
Commercial mortgage-backed securities | 368,465 | 6,858 | 10,853 | 166 | 379,318 | 7,024 | ||||||||||||||||||
U.S. government and agencies | 1,056,101 | 63,044 | — | — | 1,056,101 | 63,044 | ||||||||||||||||||
State and political subdivisions | 187,194 | 9,396 | 13,635 | 3,068 | 200,829 | 12,464 | ||||||||||||||||||
Other foreign government, supranational, and foreign government-sponsored enterprises | 524,236 | 13,372 | 51,097 | 2,981 | 575,333 | 16,353 | ||||||||||||||||||
Total investment grade securities | $ | 7,953,012 | $ | 242,398 | $ | 994,240 | $ | 62,785 | $ | 8,947,252 | $ | 305,183 | ||||||||||||
Below investment grade securities: | ||||||||||||||||||||||||
Corporate securities | $ | 330,757 | $ | 7,914 | $ | 163,152 | $ | 41,605 | $ | 493,909 | $ | 49,519 | ||||||||||||
Residential mortgage-backed securities | — | — | 412 | 12 | 412 | 12 | ||||||||||||||||||
Asset-backed securities | 5,904 | 700 | 12,581 | 1,465 | 18,485 | 2,165 | ||||||||||||||||||
Commercial mortgage-backed securities | 5,815 | 735 | — | — | 5,815 | 735 | ||||||||||||||||||
Other foreign government, supranational, and foreign government-sponsored enterprises | 32,355 | 1,258 | 39,763 | 2,327 | 72,118 | 3,585 | ||||||||||||||||||
Total below investment grade securities | 374,831 | 10,607 | 215,908 | 45,409 | 590,739 | 56,016 | ||||||||||||||||||
Total fixed maturity securities | $ | 8,327,843 | $ | 253,005 | $ | 1,210,148 | $ | 108,194 | $ | 9,537,991 | $ | 361,199 | ||||||||||||
Equity securities: | ||||||||||||||||||||||||
Non-redeemable preferred stock | $ | 10,831 | $ | 831 | $ | 21,879 | $ | 5,506 | $ | 32,710 | $ | 6,337 | ||||||||||||
Other equity securities | 202,068 | 7,020 | 6,751 | 301 | 208,819 | 7,321 | ||||||||||||||||||
Total equity securities | $ | 212,899 | $ | 7,851 | $ | 28,630 | $ | 5,807 | $ | 241,529 | $ | 13,658 | ||||||||||||
As of December 31, 2015 | ||||||||||||||||||||||||
Less than 12 months | Equal to or greater than 12 months | Total | ||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||||
Investment grade securities: | ||||||||||||||||||||||||
Corporate securities | $ | 6,388,148 | $ | 323,961 | $ | 294,755 | $ | 40,861 | $ | 6,682,903 | $ | 364,822 | ||||||||||||
Canadian and Canadian provincial governments | 122,746 | 2,532 | — | — | 122,746 | 2,532 | ||||||||||||||||||
Residential mortgage-backed securities | 452,297 | 7,036 | 82,314 | 4,057 | 534,611 | 11,093 | ||||||||||||||||||
Asset-backed securities | 581,701 | 9,825 | 199,298 | 7,100 | 780,999 | 16,925 | ||||||||||||||||||
Commercial mortgage-backed securities | 514,877 | 9,806 | 31,177 | 997 | 546,054 | 10,803 | ||||||||||||||||||
U.S. government and agencies | 1,010,387 | 57,718 | — | — | 1,010,387 | 57,718 | ||||||||||||||||||
State and political subdivisions | 157,837 | 5,349 | 13,016 | 3,718 | 170,853 | 9,067 | ||||||||||||||||||
Other foreign government, supranational, and foreign government-sponsored enterprises | 702,962 | 18,279 | 38,379 | 4,206 | 741,341 | 22,485 | ||||||||||||||||||
Total investment grade securities | $ | 9,930,955 | $ | 434,506 | $ | 658,939 | $ | 60,939 | $ | 10,589,894 | $ | 495,445 | ||||||||||||
Below investment grade securities: | ||||||||||||||||||||||||
Corporate securities | $ | 554,688 | $ | 71,171 | $ | 114,427 | $ | 31,076 | $ | 669,115 | $ | 102,247 | ||||||||||||
Residential mortgage-backed securities | 22,646 | 282 | 7,679 | 298 | 30,325 | 580 | ||||||||||||||||||
Asset-backed securities | 6,772 | 201 | 9,335 | 1,250 | 16,107 | 1,451 | ||||||||||||||||||
Commercial mortgage-backed securities | 3,253 | 248 | 767 | 117 | 4,020 | 365 | ||||||||||||||||||
Other foreign government, supranational, and foreign government-sponsored enterprises | 60,668 | 7,356 | 31,693 | 11,803 | 92,361 | 19,159 | ||||||||||||||||||
Total below investment grade securities | 648,027 | 79,258 | 163,901 | 44,544 | 811,928 | 123,802 | ||||||||||||||||||
Total fixed maturity securities | $ | 10,578,982 | $ | 513,764 | $ | 822,840 | $ | 105,483 | $ | 11,401,822 | $ | 619,247 | ||||||||||||
Equity securities: | ||||||||||||||||||||||||
Non-redeemable preferred stock | $ | 12,331 | $ | 2,175 | $ | 12,191 | $ | 3,787 | $ | 24,522 | $ | 5,962 | ||||||||||||
Other equity securities | 38,327 | 2,242 | — | — | 38,327 | 2,242 | ||||||||||||||||||
Total equity securities | $ | 50,658 | $ | 4,417 | $ | 12,191 | $ | 3,787 | $ | 62,849 | $ | 8,204 | ||||||||||||
| Page 36 | |
Reinsurance Group of America, Incorporated Investments (USD thousands) Consolidated Investment Related Gains and Losses | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr vs. PY Quarter | Year-to-date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | 2016 | 2015 | Change | |||||||||||||||||||||||||||||||
Fixed maturity and equity securities avail. for sale: | ||||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment losses on fixed maturities | $ | (4,142 | ) | $ | — | $ | (846 | ) | $ | (33,817 | ) | $ | (27,605 | ) | $ | 23,463 | $ | (38,805 | ) | $ | (57,380 | ) | $ | 18,575 | ||||||||||||||
Portion of loss recognized in accumulated other | ||||||||||||||||||||||||||||||||||||||
comprehensive income (before taxes) | 74 | — | — | — | — | 74 | 74 | — | 74 | |||||||||||||||||||||||||||||
Net other-than-temporary impairment losses on fixed | ||||||||||||||||||||||||||||||||||||||
maturities recognized in earnings | (4,068 | ) | — | (846 | ) | (33,817 | ) | (27,605 | ) | 23,537 | (38,731 | ) | (57,380 | ) | 18,649 | |||||||||||||||||||||||
Gain on investment activity | 27,217 | 46,346 | 53,615 | 27,192 | 20,077 | 7,140 | 154,370 | 73,079 | 81,291 | |||||||||||||||||||||||||||||
Loss on investment activity | (6,568 | ) | (9,054 | ) | (22,556 | ) | (11,787 | ) | (21,636 | ) | 15,068 | (49,965 | ) | (71,893 | ) | 21,928 | ||||||||||||||||||||||
Net gains (losses) on fixed maturity & equity securities | ||||||||||||||||||||||||||||||||||||||
available for sale | 16,581 | 37,292 | 30,213 | (18,412 | ) | (29,164 | ) | 45,745 | 65,674 | (56,194 | ) | 121,868 | ||||||||||||||||||||||||||
Other impairment losses and change in mortgage loan provision | (8,895 | ) | (262 | ) | 211 | (2,060 | ) | (2,292 | ) | (6,603 | ) | (11,006 | ) | (6,953 | ) | (4,053 | ) | |||||||||||||||||||||
Other non-derivative gaines (losses), net | 4,987 | 4,754 | 5,123 | 4,057 | 11,824 | (6,837 | ) | 18,921 | 28,169 | (9,248 | ) | |||||||||||||||||||||||||||
Free-standing derivatives: | ||||||||||||||||||||||||||||||||||||||
Credit default swaps | 4,564 | 6,672 | 3,518 | 3,346 | 1,253 | 3,311 | 18,100 | (4,683 | ) | 22,783 | ||||||||||||||||||||||||||||
Interest rate swaps - non-hedged | (100,500 | ) | 4,122 | 41,500 | 62,527 | (9,271 | ) | (91,229 | ) | 7,649 | 20,358 | (12,709 | ) | |||||||||||||||||||||||||
Interest rate swaps - hedged | — | — | — | — | — | — | — | 7 | (7 | ) | ||||||||||||||||||||||||||||
Foreign currency swaps - hedged (1) | 5,766 | 1,606 | (2,395 | ) | (4,562 | ) | 2,983 | 2,783 | 415 | 848 | (433 | ) | ||||||||||||||||||||||||||
Futures | (9,957 | ) | (11,677 | ) | (7,557 | ) | (11,051 | ) | (6,822 | ) | (3,135 | ) | (40,242 | ) | 319 | (40,561 | ) | |||||||||||||||||||||
CPI swaps | 223 | 76 | (520 | ) | (180 | ) | (55 | ) | 278 | (401 | ) | (208 | ) | (193 | ) | |||||||||||||||||||||||
Equity options | (8,694 | ) | (13,648 | ) | (3,225 | ) | (2,703 | ) | (21,376 | ) | 12,682 | (28,270 | ) | (16,899 | ) | (11,371 | ) | |||||||||||||||||||||
Currency forwards | (4,954 | ) | 507 | 3,577 | 2,500 | (214 | ) | (4,740 | ) | 1,630 | (1,160 | ) | 2,790 | |||||||||||||||||||||||||
Bond forwards | (225 | ) | 116 | (1,010 | ) | 841 | (911 | ) | 686 | (278 | ) | 354 | (632 | ) | ||||||||||||||||||||||||
Interest rate options | — | — | — | — | — | — | — | 3,276 | (3,276 | ) | ||||||||||||||||||||||||||||
Total free-standing derivatives | (113,777 | ) | (12,226 | ) | 33,888 | 50,718 | (34,413 | ) | (79,364 | ) | (41,397 | ) | 2,212 | (43,609 | ) | |||||||||||||||||||||||
Embedded derivatives: | ||||||||||||||||||||||||||||||||||||||
Modified coinsurance and funds withheld treaties | 20,374 | 49,078 | 76,966 | (92,249 | ) | (27,201 | ) | 47,575 | 54,169 | (98,793 | ) | 152,962 | ||||||||||||||||||||||||||
GMXB | 90,923 | 7,988 | (28,137 | ) | (62,940 | ) | 36,437 | 54,486 | 7,834 | (33,191 | ) | 41,025 | ||||||||||||||||||||||||||
Total embedded derivatives | 111,297 | 57,066 | 48,829 | (155,189 | ) | 9,236 | 102,061 | 62,003 | (131,984 | ) | 193,987 | |||||||||||||||||||||||||||
Net gain (loss) on total derivatives | (2,480 | ) | 44,840 | 82,717 | (104,471 | ) | (25,177 | ) | 22,697 | 20,606 | (129,772 | ) | 150,378 | |||||||||||||||||||||||||
Total investment related gains (losses), net | $ | 10,193 | $ | 86,624 | $ | 118,264 | $ | (120,886 | ) | $ | (44,809 | ) | $ | 55,002 | $ | 94,195 | $ | (164,750 | ) | $ | 258,945 | |||||||||||||||||
(1) The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net gains (losses) on total derivatives. | ||||||||||||||||||||||||||||||||||||||
| Page 37 | |
Appendix | ||||
Reconciliations of GAAP Income Statements to Operating Income Statements | ||||
| Page 38 | |
Reinsurance Group of America, Incorporated Reconciliation of GAAP Income Statements to Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
U.S. & Latin America Traditional | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 131,492 | $ | 77,081 | $ | 111,430 | $ | 51,098 | $ | 79,483 | $ | 52,009 | $ | 371,101 | $ | 235,771 | $ | 135,330 | ||||||||||||||||||||
Investment and derivative gains (losses) - non-operating (1) | (336 | ) | (69 | ) | 1 | 65 | 203 | (539 | ) | (339 | ) | 201 | (540 | ) | ||||||||||||||||||||||||
Change in value of modified coinsurance and | ||||||||||||||||||||||||||||||||||||||
funds withheld embedded derivatives (1) | (1,811 | ) | 3,463 | 881 | 2,035 | (696 | ) | (1,115 | ) | 4,568 | (2,507 | ) | 7,075 | |||||||||||||||||||||||||
Operating income before income taxes | $ | 129,345 | $ | 80,475 | $ | 112,312 | $ | 53,198 | $ | 78,990 | $ | 50,355 | $ | 375,330 | $ | 233,465 | $ | 141,865 | ||||||||||||||||||||
U.S. & Latin America Asset Intensive | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 72,261 | $ | 88,732 | $ | 93,979 | $ | (30,830 | ) | $ | 30,874 | $ | 41,387 | $ | 224,142 | $ | 152,946 | $ | 71,196 | |||||||||||||||||||
Investment and derivative gains (losses) - non-operating (1) | 103,778 | 867 | (27,119 | ) | (24,603 | ) | 39,757 | 64,021 | 52,923 | (16,009 | ) | 68,932 | ||||||||||||||||||||||||||
Change in value of modified coinsurance and | ||||||||||||||||||||||||||||||||||||||
funds withheld embedded derivatives (1) | (18,563 | ) | (52,541 | ) | (77,847 | ) | 90,214 | 27,897 | (46,460 | ) | (58,737 | ) | 101,300 | (160,037 | ) | |||||||||||||||||||||||
GMXB embedded derivatives (1) | (90,923 | ) | (7,988 | ) | 28,137 | 62,940 | (36,437 | ) | (54,486 | ) | (7,834 | ) | 33,191 | (41,025 | ) | |||||||||||||||||||||||
Funds withheld gains (losses) - investment income | (7,516 | ) | (2,295 | ) | (10,304 | ) | (4,624 | ) | 59 | (7,575 | ) | (24,739 | ) | (10,059 | ) | (14,680 | ) | |||||||||||||||||||||
EIA embedded derivatives - interest credited | (39,964 | ) | 42 | (17,364 | ) | 29,149 | (1,412 | ) | (38,552 | ) | (28,137 | ) | (12,582 | ) | (15,555 | ) | ||||||||||||||||||||||
DAC offset, net | 27,625 | 31,876 | 64,841 | (76,978 | ) | (13,142 | ) | 40,767 | 47,364 | (49,225 | ) | 96,589 | ||||||||||||||||||||||||||
Operating income before income taxes | $ | 46,698 | $ | 58,693 | $ | 54,323 | $ | 45,268 | $ | 47,596 | $ | (898 | ) | $ | 204,982 | $ | 199,562 | $ | 5,420 | |||||||||||||||||||
U.S. & Latin America Financial Reinsurance | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 14,447 | $ | 13,982 | $ | 14,875 | $ | 15,934 | $ | 15,936 | $ | (1,489 | ) | $ | 59,238 | $ | 55,017 | $ | 4,221 | |||||||||||||||||||
Operating income before income taxes | $ | 14,447 | $ | 13,982 | $ | 14,875 | $ | 15,934 | $ | 15,936 | $ | (1,489 | ) | $ | 59,238 | $ | 55,017 | $ | 4,221 | |||||||||||||||||||
Total U.S. & Latin America | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 218,200 | $ | 179,795 | $ | 220,284 | $ | 36,202 | $ | 126,293 | $ | 91,907 | $ | 654,481 | $ | 443,734 | $ | 210,747 | ||||||||||||||||||||
Investment and derivative gains (losses) - non-operating (1) | 103,442 | 798 | (27,118 | ) | (24,538 | ) | 39,960 | 63,482 | 52,584 | (15,808 | ) | 68,392 | ||||||||||||||||||||||||||
Change in value of modified coinsurance and | ||||||||||||||||||||||||||||||||||||||
funds withheld embedded derivatives (1) | (20,374 | ) | (49,078 | ) | (76,966 | ) | 92,249 | 27,201 | (47,575 | ) | (54,169 | ) | 98,793 | (152,962 | ) | |||||||||||||||||||||||
GMXB embedded derivatives (1) | (90,923 | ) | (7,988 | ) | 28,137 | 62,940 | (36,437 | ) | (54,486 | ) | (7,834 | ) | 33,191 | (41,025 | ) | |||||||||||||||||||||||
Funds withheld gains (losses) - investment income | (7,516 | ) | (2,295 | ) | (10,304 | ) | (4,624 | ) | 59 | (7,575 | ) | (24,739 | ) | (10,059 | ) | (14,680 | ) | |||||||||||||||||||||
EIA embedded derivatives - interest credited | (39,964 | ) | 42 | (17,364 | ) | 29,149 | (1,412 | ) | (38,552 | ) | (28,137 | ) | (12,582 | ) | (15,555 | ) | ||||||||||||||||||||||
DAC offset, net | 27,625 | 31,876 | 64,841 | (76,978 | ) | (13,142 | ) | 40,767 | 47,364 | (49,225 | ) | 96,589 | ||||||||||||||||||||||||||
Operating income before income taxes | $ | 190,490 | $ | 153,150 | $ | 181,510 | $ | 114,400 | $ | 142,522 | $ | 47,968 | $ | 639,550 | $ | 488,044 | $ | 151,506 | ||||||||||||||||||||
(1) Included in "Investment related gains (losses), net" on Consolidated GAAP Income Statement. | ||||||||||||||||||||||||||||||||||||||
| Page 39 | |
Reinsurance Group of America, Incorporated Reconciliation of GAAP Income Statements to Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Canada Traditional | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 37,026 | $ | 34,275 | $ | 43,309 | $ | 20,095 | $ | 44,640 | $ | (7,614 | ) | $ | 134,705 | $ | 124,175 | $ | 10,530 | |||||||||||||||||||
Investment and derivative gains (losses) - non-operating (1) | (1,550 | ) | (2,624 | ) | (1,049 | ) | (372 | ) | 259 | (1,809 | ) | (5,595 | ) | 5,947 | (11,542 | ) | ||||||||||||||||||||||
Funds withheld gains (losses) - investment income | (722 | ) | (1,027 | ) | (1,353 | ) | (359 | ) | 187 | (909 | ) | (3,461 | ) | (6,311 | ) | 2,850 | ||||||||||||||||||||||
Operating income before income taxes | $ | 34,754 | $ | 30,624 | $ | 40,907 | $ | 19,364 | $ | 45,086 | $ | (10,332 | ) | $ | 125,649 | $ | 123,811 | $ | 1,838 | |||||||||||||||||||
Canada Financial Solutions | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 4,065 | $ | 1,160 | $ | 2,128 | $ | 592 | $ | 3,420 | $ | 645 | $ | 7,945 | $ | 13,902 | $ | (5,957 | ) | |||||||||||||||||||
Operating income before income taxes | $ | 4,065 | $ | 1,160 | $ | 2,128 | $ | 592 | $ | 3,420 | $ | 645 | $ | 7,945 | $ | 13,902 | $ | (5,957 | ) | |||||||||||||||||||
Europe, Middle East and Africa Traditional | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 15,826 | $ | 8,515 | $ | 6,834 | $ | (1,116 | ) | $ | 12,859 | $ | 2,967 | $ | 30,059 | $ | 48,410 | $ | (18,351 | ) | ||||||||||||||||||
Investment and derivative gains (losses) - non-operating (1) | — | — | — | (5 | ) | — | — | (5 | ) | (338 | ) | 333 | ||||||||||||||||||||||||||
Operating income (loss) before income taxes | $ | 15,826 | $ | 8,515 | $ | 6,834 | $ | (1,121 | ) | $ | 12,859 | $ | 2,967 | $ | 30,054 | $ | 48,072 | $ | (18,018 | ) | ||||||||||||||||||
Europe, Middle East and Africa Financial Solutions | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 41,328 | $ | 43,786 | $ | 27,469 | $ | 25,424 | $ | 28,145 | $ | 13,183 | $ | 138,007 | $ | 108,445 | $ | 29,562 | ||||||||||||||||||||
Investment and derivative gains (losses) - non-operating (1) | (4,914 | ) | (8,159 | ) | (1,468 | ) | 1,004 | (9,261 | ) | 4,347 | (13,537 | ) | (10,170 | ) | (3,367 | ) | ||||||||||||||||||||||
Investment income on unit-linked variable annuities | (4,217 | ) | (5,540 | ) | (2,966 | ) | (408 | ) | — | (4,217 | ) | (13,131 | ) | — | (13,131 | ) | ||||||||||||||||||||||
Interest credited on unit-linked variable annuities | 4,217 | 5,540 | 2,966 | 408 | — | 4,217 | 13,131 | — | 13,131 | |||||||||||||||||||||||||||||
Non-investment derivatives | 314 | (1,682 | ) | 127 | (817 | ) | (105 | ) | 419 | (2,058 | ) | (189 | ) | (1,869 | ) | |||||||||||||||||||||||
Operating income before income taxes | $ | 36,728 | $ | 33,945 | $ | 26,128 | $ | 25,611 | $ | 18,779 | $ | 17,949 | $ | 122,412 | $ | 98,086 | $ | 24,326 | ||||||||||||||||||||
Asia Pacific Traditional | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 18,464 | $ | 19,822 | $ | 34,482 | $ | 41,160 | $ | 37,415 | $ | (18,951 | ) | $ | 113,928 | $ | 105,654 | $ | 8,274 | |||||||||||||||||||
Investment and derivative gains (losses) - non-operating (1) | — | — | — | (16 | ) | (1,706 | ) | 1,706 | (16 | ) | — | (16 | ) | |||||||||||||||||||||||||
Operating income before income taxes | $ | 18,464 | $ | 19,822 | $ | 34,482 | $ | 41,144 | $ | 35,709 | $ | (17,245 | ) | $ | 113,912 | $ | 105,654 | $ | 8,258 | |||||||||||||||||||
Asia Pacific Financial Solutions | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | (11,966 | ) | $ | 7,549 | $ | (73 | ) | $ | 8,553 | $ | 5,467 | $ | (17,433 | ) | $ | 4,063 | $ | 19,619 | $ | (15,556 | ) | ||||||||||||||||
Investment and derivative gains (losses) - non-operating (1) | 5,846 | (5,283 | ) | (5,925 | ) | (1,111 | ) | (17 | ) | 5,863 | (6,473 | ) | 2,899 | (9,372 | ) | |||||||||||||||||||||||
Operating income (loss) before income taxes | $ | (6,120 | ) | $ | 2,266 | $ | (5,998 | ) | $ | 7,442 | $ | 5,450 | $ | (11,570 | ) | $ | (2,410 | ) | $ | 22,518 | $ | (24,928 | ) | |||||||||||||||
(1) Included in "Investment related gains (losses), net" on Consolidated GAAP Income Statement. | ||||||||||||||||||||||||||||||||||||||
| Page 40 | |
Reinsurance Group of America, Incorporated Reconciliation of GAAP Income Statements to Operating Income Statements (USD thousands) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Current Qtr | Year-to-Date | ||||||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | vs. PY | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | Quarter | 2016 | 2015 | Change | ||||||||||||||||||||||||||||||
Corporate and Other Segment | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | (27,400 | ) | $ | (7,302 | ) | $ | 18,790 | $ | (23,330 | ) | $ | (51,496 | ) | $ | 24,096 | $ | (39,242 | ) | $ | (119,144 | ) | $ | 79,902 | ||||||||||||||
Investment and derivative gains (losses) - non-operating (1) | 1,120 | (11,690 | ) | (31,540 | ) | (6,930 | ) | 34,799 | (33,679 | ) | (49,040 | ) | 67,056 | (116,096 | ) | |||||||||||||||||||||||
Non-investment derivatives | (25 | ) | (23 | ) | (17 | ) | (14 | ) | (15 | ) | (10 | ) | (79 | ) | 71 | (150 | ) | |||||||||||||||||||||
Operating income (loss) before income taxes | $ | (26,305 | ) | $ | (19,015 | ) | $ | (12,767 | ) | $ | (30,274 | ) | $ | (16,712 | ) | $ | (9,593 | ) | $ | (88,361 | ) | $ | (52,017 | ) | $ | (36,344 | ) | |||||||||||
Consolidated | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 295,543 | $ | 287,600 | $ | 353,223 | $ | 107,580 | $ | 206,743 | $ | 88,800 | $ | 1,043,946 | $ | 744,795 | $ | 299,151 | ||||||||||||||||||||
Investment and derivative gains (losses) - non-operating (1) | 103,944 | (26,958 | ) | (67,100 | ) | (31,968 | ) | 64,034 | 39,910 | (22,082 | ) | 49,586 | (71,668 | ) | ||||||||||||||||||||||||
Change in value of modified coinsurance and | ||||||||||||||||||||||||||||||||||||||
funds withheld embedded derivatives (1) | (20,374 | ) | (49,078 | ) | (76,966 | ) | 92,249 | 27,201 | (47,575 | ) | (54,169 | ) | 98,793 | (152,962 | ) | |||||||||||||||||||||||
GMXB embedded derivatives (1) | (90,923 | ) | (7,988 | ) | 28,137 | 62,940 | (36,437 | ) | (54,486 | ) | (7,834 | ) | 33,191 | (41,025 | ) | |||||||||||||||||||||||
Funds withheld gains (losses) - investment income | (8,238 | ) | (3,322 | ) | (11,657 | ) | (4,983 | ) | 246 | (8,484 | ) | (28,200 | ) | (16,370 | ) | (11,830 | ) | |||||||||||||||||||||
EIA embedded derivatives - interest credited | (39,964 | ) | 42 | (17,364 | ) | 29,149 | (1,412 | ) | (38,552 | ) | (28,137 | ) | (12,582 | ) | (15,555 | ) | ||||||||||||||||||||||
DAC offset, net | 27,625 | 31,876 | 64,841 | (76,978 | ) | (13,142 | ) | 40,767 | 47,364 | (49,225 | ) | 96,589 | ||||||||||||||||||||||||||
Investment income on unit-linked variable annuities | (4,217 | ) | (5,540 | ) | (2,966 | ) | (408 | ) | — | (4,217 | ) | (13,131 | ) | — | (13,131 | ) | ||||||||||||||||||||||
Interest credited on unit-linked variable annuities | 4,217 | 5,540 | 2,966 | 408 | — | 4,217 | 13,131 | — | 13,131 | |||||||||||||||||||||||||||||
Non-investment derivatives | 289 | (1,705 | ) | 110 | (831 | ) | (120 | ) | 409 | (2,137 | ) | (118 | ) | (2,019 | ) | |||||||||||||||||||||||
Operating income before income taxes | $ | 267,902 | $ | 230,467 | $ | 273,224 | $ | 177,158 | $ | 247,113 | $ | 20,789 | $ | 948,751 | $ | 848,070 | $ | 100,681 | ||||||||||||||||||||
(1) Included in "Investment related gains (losses), net" on Consolidated GAAP Income Statement. | ||||||||||||||||||||||||||||||||||||||
| Page 41 | |